Thursday, December 15, 2011

Bears Maintain Near Term Technical Advantage Going Into Fridays Session

Crude oil closed lower on Thursday as it extends Wednesday's decline. The low range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If January extends this week's decline, the 38% retracement level of the October-November rally crossing at 92.68 is the next downside target.

Closes above Tuesday's high crossing at 101.25 would confirm that a short term low has been posted. First resistance is Tuesday's high crossing at 101.25. Second resistance is November's high crossing at 102.44. First support is the 38% retracement level of the October-November rally crossing at 92.68. Second support is the 50% retracement level of the October-November rally crossing at 89.37.

Precious Metals, Equities and Crude Oil Long Term Outlook

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