Crude oil mounts as traders expect elevated demand
Crude oil traded above $82 a barrel in New York, poised for a second weekly gain, on optimism fuel demand will recover as China’s economic expansion accelerates.
Anthony Boyajian 
12 March 2010
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Crude oil traded above $82 a barrel in New York, poised for a second weekly gain, on optimism fuel demand will recover as China’s economic expansion accelerates. Oil was little changed amid expectations the Organization of Petroleum Exporting Countries will increase shipments this month on strong demand from China, the world’s second-biggest energy user. China’s inflation last month outstripped returns on household savings, threatening to spur asset purchases.
Trading Tactics
A clear uptrend could be an opportunity to Buy Crude Oil.
The buying point is at 82.30; previous resistance and pivot point is the take profit at 83.00; Fibonacci 38.2% is the stop loss at 81.20
The selling point is at 80.80; Fibonacci 61.8% is the take profit at 80.10; Fibonacci 23.6% is the stop loss at 81.90
Technical: Crude oil forms a higher high and continues the major uptrend. A move back higher could set up a test of 83.00
To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice MACD crosses the signal line upwards; RSI (Relative Strength Index) is in an uptrend; Momentum and stochastic are in a bearish direction.
*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
12 March 2010
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