Ever since the Crude Oil prices breakout from the $93 resistance, prices has seen a good surge towards $107-$108 region. Strong support at $106. Some caution here when the Crude Oil RSI is hovering around overbought levels. More importantly, there are various bearish divergence signals at RSI & MACD. Current rise may not be sustainable in short term.
The next resistance will be at 30 months high level set in the last quarter of 2009. Current support is fundamentally created from disrupted oil supply coupled with weakening USD. Improving US economic figures also provide confidence of recovery in production levels which will require increased energy consumption. Unless there are improving supply and good progress at Japan Nuclear Plant radiation containment, Crude Oil prices will oscillate between current levels and $102.
Meanwhile, the most immediate impact will be petrol & electrical prices.
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