Crude Oil Analysis - Bullish

Up trend developing steadily. The NYMEX (New York Mercantile Exchange) Crude Oil price has developed a healthy up trend since the steep fall from US$145 in July last year to a low of $35 earlier this year. The current price is $69.50. The price movement has formed an up trend line supported by the pivot low in early this year and the recent pivot low 3 weeks ago. The price is also being supported by the 15 and 30-week moving average which has now crossed to form a bullish reversal in the long term.


Daily Crude Oil chart with volume as at 31 July 2009 using NextVIEW Advisor Professional

The up trend is supported by good bullish momentum indicated by increasing highs from the RSI, MACD and Momentum indicators. With this strong momentum, there is a high chance that the prices of crude oil to create a new high for this year and possibly test the resistance level at $77, based on a 38.2% Fibonacci retracement level from the long term bear trend. Support is at the up trend line and moving averages at $60.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.