Thursday, May 5, 2011

NYMEX Crude Oil – May Retest Crucial Support At 200-d SMA

Commodity to watch – Nymex crude oil

Crude-oil futures skidded 8.5% (the biggest one-day percentage decline since April 09) to US$99.6/barrel, dragged down by a selloff in precious metals and fears of diminished demand after a report showed a still-ailing U.S. job market, higher weekly crude stockpiles and stronger greenback as ECB maintained interest rate unchanged.

At US$99.6/barrel, crude oil already plunged 13.3% from 52-week high of US$114.88 on 2 May. After breaching major support of lower Bollinger band, near term outlook turns bearish with immediate support zones around US$93, followed by US$89 (200-d SMA) and US$86.

Technical rebound is likely when prices retest these levels. Technical rebound upside targets are US$105-110.

Nymex Crude oil – May retest crucial support at 200-d SMA
Nymex Crude Oil 06-05-2011

Weekly NYMEX Oil: Downside Bias Ahead Of A Possible Dead Cross In MACD.
Nymex Crude Oil 06-05-2011a


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