Friday, October 9, 2009

Technical Analysis for Energy Markets

Crude achieved a decline yesterday, slightly nearing the awaited support level at 69.00 and pushing to the upside to touch the key resistance level 72.50 (the previously breached main support level for the upside direction); where crude closed below resistance level for the bearish channel, which organizes the trading of the short term bearish waves, shown in the image above, - in yellow-. From here, we still see that crude is heading to the downside over an intraday basis and initially targeting 68.85. As long as the daily close is below 72.75, chances of achieving this downside direction will prevail; where the stochastic supports the bearish trend for today.

The trading range for today is among the key support at 67.00 and the key resistance at 74.80.

The general trend is to the upside as far as 47.20 remains intact with targets at 85.00.

Support: 70.45, 69.85, 68.85, 67.45, 66.50
Resistance: 71.30, 72.75, 73.15, 73.80, 74.60

Recommendation: Based on the charts and explanations above our opinion is selling oil at 71.30 and targeting 68.85 and stop loss above 72.75, might be appropriate

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