Oil Drifts Sideways

oil trading
WTI Chart 17 Jan 2011

The weaker dollar is not assisting any move in crude oil at present which has currently stalled in the $91-$92 per barrel area following its sharp recovery last week from the low of $87.24 which was signalled by a long leg doji candle on the daily oil chart.  However, despite the current sideways consolidation Friday’s candle, with the deep test to the downside, hinted at a further move higher with the low of the session at $90.10 finding strong support from the 9 day moving average, always a good, short term signal.  For any continuation of the longer trend higher we now need to see a break and hold above the recent high of $92.36 and once clear then we will have a solid platform of support for a sustained move higher as we move towards our medium term target of $100 per barrel and beyond.

Oil market focused on BP/Rosneft deal

About Anna 1036 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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