Thursday, 01 December 2011 22:38

Crude Oil Adrift Along with S&P500

WTI Crude Oil (NY Close): $100.36 // +0.57 // +0.57%

Risk sentiment trends are adrift after yesterday’s sharp recovery, with traders apparently rethinking the implications of a 50bps swap rate cut from the world’s top central banks, clouding the outlook for crude oil prices. The US ISM manufacturing gauge headings the economic calendar, with expectations calling for the highest reading in five months. This may underpin prices in the absence of anything new out of the Eurozone, but the debt crisis clearly continues to preoccupy investors.

On the technical front, prices are retesting support-turned-resistance at the bottom of a rising channel set from early October, now at 102.32. A break above this boundary exposes the November 17 high at 103.35. Support lines up at 94.56.

Source: dailyfx.com  

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