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11/8/2005
Crude Oil December Contract is at a very important junction at the moment The 59 Dollar/Barrel mark is acting as a strong support area for the oil prices. The December contract has established this support in the 3rd week of July right before the Katrina and Rita happened.
Technically speaking, oil prices formed a downtrend channel. At this moment, the upper resistance is around $60.50/$60.75 price area. The lower part of the channel or the support, is around $57 dollars a barrel.
Considering the seasonality of energy prices, it will not take much to push the prices higher. Colder weather in the Northeast may do just that. The bet on the warmer weather (shorting the oil) is hard. But it may turn out to be the right bet...
Tomorrow is the API Energy Report... We may get another perspective on the price action after it comes out..
This is not a trade recommendation and no one should treat it as such.
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Recommended Links on this topic:
Commitment of Traders Report - Crude Oil |
