AvaTrade – Crude Oil Analysis – 4 October 2012
We’ve made a nice little reversal, as we can see here. What happened it looks like, it hit the resistance right here.
It’s a key resistance level, by the way.You see it hitting at 7 pivot points, 93.60. Well, here it hit the resistance, consolidated a little bit, and then started to fall, consolidated again, then fell even further. The market has broken below the support level at 89.44, which is right here, and looks like now we can see it test lower at this support level at 86.04.
And then, a break in daily close below this level can see it test further down towards the 82.66 level, which is right here.
We have a couple of minor support levels before that, one here at the round number 84 we should be paying attention to. That’s, as I said, right about in here, 84, right around in here. We should pay attention to that. As you can see, before oil reversal, it has been in an up-website since late June, beginning of July.
Right here we see oil in an up-website, and then hit the trend line resistance in this area right here just below that, and started its reversal. Now, alternatively, we see near-term resistance being recast at the former support level of 89.44. Should we break about that, we can see the next level right in this area here at 91.72, 91.70, which is right in here.
As you can see, it traded at this level and reversed here sharply. And just above that we have this key level, the strong resistance level right here at 93.60, which oil banged its head against and reversed. That takes care of today’s oil analysis. If you have any questions or comments please leave them in the Comment box for me, and we’ll pick up again next week.
Have a great day trading.