NYMEX Crude oil futures, August 2010 contract (CLAQ0):
Today’s price action is timidly bullish. “Timid” and “bullish” do not go together well in commodities and the weekly continuation chart also illustrates that the bulls are struggling. Caution is warranted.
Both the 1:1 Heating Oil and Gasoline cracks have been declining all week, and the products have not been a factor of strength to WTI in the last few days.
Nevertheless, as long as CLAQ0 remain above 75.00, the bulls have a reasonable chance of regaining control. Our bearish trigger remains a close below 74.80.
· As long as CLAQ0 remains above 75.00, it will be positioned to resume its rise towards 78.70, then 79.17 and then 79.94.
· On the other hand, a close below 74.80 will signal a decline towards 72.80, then 71.75.
Provided by NewEdge USA, LLC
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