Sunday, November 8, 2009

Crude oil 500dma

Crude oil ran into the 500 day moving average(purple line) at $82.50 last week. It's obvious that traders where taking profits there, since price could not close over the 500 dma. Look for crude oil to pull back and test old resistance at $75, which should be support now. Remember the 500dma, as the S&P and Dow Jones indexes are very close to theirs.