Technical Analysis: Oil takes a tumble
02-07-2009 15:41
The oil price's inability to break above its previous highs has prompted a sell-off on the back profit-taking and renewed US dollar strength.
There is now a significant cap around the $73.25 level which, in the short term could well be a tough nut to crack.
The break of trend line support today at $67.70 has prompted a sell-off towards the lows of 23rd June at $66.50.
A close below this support line at $67.70 should prompt a renewed test of these lows, and a break and close below $66.50, could indicate a deeper correction on US Crude Oil to $60.
Any increased US dollar strength will make this scenario much more likely in the short term.
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