Thursday, February 12, 2009

Crude Oil Testing First Support At $35.18


March crude oil was lower overnight as it extends this week's decline below December's low crossing at $38.00.

Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near term.

If March extends the decline, psychological support crossing at $35.00 is the next downside target.

Closes above the 20 day moving average crossing at $41.20 are needed to confirm that a short term low has been posted.

Closes above the reaction high crossing at $48.59 are needed to confirm that a trend change has taken place.

First resistance is the 10 day moving average crossing at $39.26.

Second resistance is the 20 day moving average crossing at $41.20.

First support is the overnight low crossing at $35.18.

Second support is psychological support crossing at $35.00.

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