Thursday, September 15, 2011

Statements Out of Europe Not Enough to Push Oil Prices Through Resistance

The hope that the credit crisis in Europe will fade and support higher commodity prices itself is fading as oil traded slightly higher in Wednesday evenings overnight session. Crude oils Stochastics and RSI are overbought and diverging. If the bulls can break through strong resistance at 90.60 the May-July downtrend line crossing near 92.55 will be the next upside target.

Crude oil bears will gain a solid technical advantage if oil closes below Monday's low crossing at 85.17. This would confirm that the corrective rally off August's low has ended while opening the door for a possible test of August's low crossing at 76.61 later this fall.

First resistance is Wednesday's high crossing at 90.60. Second resistance is the May-July downtrend line crossing near 92.55. First support is Monday's low crossing at 85.17. Second support is last Tuesday's low crossing at 83.47. Crude oil pivot point for Thursday morning is 89.12.

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