Wednesday, November 18, 2009

Weaker U.S. Dollar Supports Buying Interest in Crude Oil

Crude oil closed up $0.49 at $79.63 a barrel today. Prices closed near mid range again today. A weaker U.S. dollar supported buying interest in crude today. Crude oil bulls have the near term technical advantage in crude oil. The next downside price objective for the crude oil bears is to produce a close below solid technical support at last week's low of $75.57.

Natural gas closed down 26.9 cents at $4.26 today. Prices closed near the session low and hit a fresh contract low today. Serious near term chart damage has occurred recently, including more today. Bears have the solid near term technical advantage.

Unleaded gasoline (RBOB) closed up 100 points at $2.0149 today. Prices closed nearer the session low today. Bulls still have the near term technical advantage. The next upside price objective for the bulls is closing prices above solid technical resistance at the October high of $2.1015.

The U.S. dollar index closed down 29 points at 75.17 today. Prices closed near mid range today. Bears still have the solid overall near term technical advantage, amid no early clues of a market bottom being close at hand. Bulls' next upside price objective is to close prices above solid technical resistance at 77.00.

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2 comments:

Anonymous said...

So, strong support at 74.90 for more than one week doesn't even count as a "clue" to a possible bottom? The USD also closed above the bottom prices from a month ago. You lose a lot of credibility by making an absolutist statement like this. I know of no credible technical analyst who would agree with it.

"Bears still have the solid overall near term technical advantage, amid no early clues of a market bottom being close at hand."

Crude Oil Trader said...

I also know of no credible analyst named "Anonymous". Thanks for your input, that's what makes a market.

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