Crude Oil Climbs to Over $77 a Barrel
October 15th, 2009 Posted in FX Education, Tech Analysis
Name: Anton Eljwizat
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Crude Oil rose above $77 a barrel to settle at a record high for the year on Thursday as economic optimism hinted at a recovery in global energy demand. However, I will illustrate below that the crude oil may very well be heading for a reversal. Forex traders can take advantage of this imminent downward movement by entering short positions at an excellent entry price.
• The technical indicators used are the Slow Stochastic, Relative Strength Index (RSI) and MACD
• Point 1: The Slow Stochastic indicates a fresh bearish cross, which may signal a downward movement is going to occur in the near future.
• Point 2: The MACD signals a bearish course for the pair is imminent, as the MACD oscillator is set to go reverse course anytime soon.
• Point 3: The RSI signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.
Crude Oil Daily Chart
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Tags: commodity prices, Crude Oil, crude prices, Forex, forex blog, MACD, RSI, Slow Stochastic, Technical Analysis
