Trade ideas, analysis and low risk set ups for commodities, Bitcoin, gold, silver, coffee, the indexes, options and your retirement. We'll help you keep your emotions out of your trading.
Thursday, January 28, 2010
Bloomberg Technical Analysis: Crude Oil Set to Rebound to $79.50 a Barrel
Oil may rise to $79.50 a barrel after holding above its 200 day moving average, according to a technical analysis by Lind-Waldock & Co. in Chicago.
Prices will probably “bounce” next week after March oil futures dropped for 10 of the past 12 sessions without sliding below support at the 200 day level, said Richard Ilczyszyn, a senior market strategist with Lind-Waldock, a division of MF Global Ltd. Oil dropped $1.04, or 1.4 percent, to $73.67 yesterday, the lowest settlement since Dec. 21.
“The 200 day moving average held, which is a sign that prices are headed back up,” Ilczyszyn said in a telephone interview.
The contract will next hit resistance at the 50 day and 21 day moving averages, which were $78.33 and $79.41, respectively, yesterday, Ilczyszyn said.
“If the market closes below $72, there is going to be a big flood,” Ilczyszyn said. “There would be repercussions across the board and we would see big drops in both gasoline and heating oil.”
A settlement below $72, which last occurred on Oct. 7 on the New York Mercantile Exchange, would be a signal for the contract to test $67.99, the price on Sept. 25, he said.
For more energy stories Check Out Bloomberg.Com
Get Started Trading Now…..With 10 FREE Trading Lessons
Share
Labels:
Bloomberg,
Crude Oil,
Lind_Waldock Co.,
Richard Ilczyszyn
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment