Energy and Precious Metals Technical Analysis
Analysis - Commodity Technical Analysis
Crude oil fell, headed for its biggest weekly decline since January on concern a prolonged global recession will sap demand for energy. Oil has dropped 10 percent this week on speculation fuel consumption in the U.S., the biggest energy-using nation, will remain subdued. Gasoline stockpiles increased over the Independence Day weekend, the peak of the summer driving season, a July 8 report showed. Yesterday, futures touched $59.25 a barrel, the lowest intraday price since the start of the year.
Trading Tactics
Sell Crude oil on signs of a double top formation.
The buying point is at 65.50; previous resistance is the take profit at 73.40; Fibonacci 38.2% is the stop loss at 58.10
The selling point is at 59.77; Fibonacci 50% is the take profit at 53.50; Fibonacci 23.6% is the stop loss at 64.30
Technical: Crude oil fails to break the previous resistance and form a double top formation. A move back lower could set up a test of 53.50
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