Tuesday, September 27, 2011

Crude oil outlook: SupportsAt US$70-75; Resistance At US$90-95

Crude oil: Supports: US$70-75; Resistance: US$90-95
# Crude oil jumped 1.8% to US$81/barrel overnight on hopes of stronger action to solve the eurozone crisis and avert wider financial contagion and global recession. To recap, it tumbled 34% from 52-wk high of US$114.8 to its lowest US$75.7 in early
August amid rising risks of global recession.

# If prices can breach the mid Bollinger band of US$85, we expect more upside targets to US$88 (50-d SMA) and US$90 (downtrend line resistance). Beyond that, it is likely to face tremendous hurdles at US$92.6 (upper Bollinger band) and
US$95.4 (200-d SMA).

# On the other hand, deteriorating economic outlook and failure to tackle the euro-zone debt crisis in the near term will dampen sentiment and trigger another round of selldown towards US$75-79 territory. A global recession may see prices sliding further towards US$65-74 levels.

Weekly NYMEX OIL: Medium To Long Term Support At US$64-74/Barrel
Nymex Crude Oil 27-09-2011

Daily NYMEX OIL: Strong Downtrend Line Resistance Near US$90/Barrel
Nymex Crude Oil 27-09-2011a



Source: StockCharts.com
HLIB Research

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