| CATEGORY: TA TECHNICAL ANALYSIS |
Technical Analysis: Crude Oil breaks to the downside |
|
By Michael Hewson
|
|
Fri 27 Nov 2009
|
LONDON (SHARECAST) - With the slide in the dollar against a range of commodities over the past few weeks it has been noticeable that crude oil has not followed this pattern, trading in a range between the 100 week moving average, above $80, and support from the previous break-out highs between $75 and $76.
Within this range it has been noticeable that it has also had a downward bias with upper line resistance at $79.75.
It has now broken out below the lower end of this declining trading range and looks set to test the line from the July lows around $70.90, after EIA inventory data on Wednesday, revealed that US commercial inventories increased by 1 million barrels from the previous week.
At 337.8 million barrels, U.S. crude oil inventories are now above the upper limit of the average range for this time of year.
With the fears about Dubai World and the ongoing global recession, the main focus on the oil price will be the global economic recovery, and any setback in that respect will weigh on the oil price in the short term.
|
|
| |
|
 |
Archived Stories |
 |
|
Front Page Stories |
|
|
