Finotec News Archive - March 05 2010
U.S. Dollar rebound could see Crude oil prices drop
Crude oil rose in New York, poised for the third weekly gain in four, on optimism fuel demand will increase amid improved prospects for an economic recovery in the U.S., the world’s biggest energy consumer.
Anthony Boyajian 
05 March 2010
Crude oil rose in New York, poised for the third weekly gain in four, on optimism fuel demand will increase amid improved prospects for an economic recovery in the U.S., the world’s biggest energy consumer. Oil also gained on a report that the Organization of Petroleum Exporting Countries will cut shipments by 2.3 percent in the month ending March 20. Crude pared yesterday’s 0.8 percent decline after U.S. initial jobless applications fell in the week ended Feb. 27, easing concerns that a jobs report today will signal a deteriorating labor market.
Trading Tactics
A double top formation could be an opportunity to sell Crude Oil.
The buying point is at 82.10; previous resistance is the take profit at 83.90; Fibonacci 23.6% is the stop loss at 80.50
The selling point is at 80.72; Fibonacci 38.2% is the take profit at 79.60; Pivot point is the stop loss at 81.80
Technical: Crude oil fails to break the previous resistance and form a lower pick. A move back lower could set up a test of 79.60
To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice MACD crosses the signal line downwards; RSI (Relative Strength Index) is in a downtrend; Momentum is in a downtrend and Stochastic is in an overbought area.
*Analysis is for information purposes only and does not constitute advice in any form. Past performance is not an indicator of future performance. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment.
By Finotec’s professional analyst,
dealingdesk@finotec.com
Crude oil (Hourly Chart)


Finotec Analysis Team
05 March 2010
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