By Greg Holden – The price of Crude Oil has been receiving support from the winter season in the northern hemisphere lately, but we are beginning to see technical indicators which suggest downward pressure.
The most recent jump in value was towards $90 a barrel. As winter snow storms pound the American northeast, and recently arrive in Western Europe as well, heating fuel costs move upward for a cyclical, annual upturn.
As we can see on the charts below, Crude Oil prices have indeed been moving upward cyclically, but also generally.
Retracing the price’s movement for the past few years allows us to see that the price has in fact reached the 50% retracement level on the weekly chart and should meet some serious resistance at the $90 level.
The RSI on the weekly chart shows the price just inside the over-bought region, which suggests that downward pressure is mounting.
We can also see that the most recent candlestick is a doji formation, which supports the bearish notion.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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