ENM: oil price still showing tendencies for short positions
The NYMEX WTI crude oil price is 99c lower at $80.80 a barrel.
The Brent Crude oil price is 75c lower at $83.12 a barrel.
Looking at the WTI crude charts there remains a preference to enter short positions below 82.4 with targets at 80.7 & 80.
Alternatively should investor sentiment make a sudden turn around then the upside penetration of 82.4 will call for a rebound towards 83.44 & 84.
However Trading Central do caution that the RSI calls for a new downleg.
The oil price has declined mainly by the EU and IMF’s decision to bailout Ireland and investors are concerned that the bailout would result in a downgrade to Ireland’s credit rating.
European markets remain on edge this morning as the spotlight may soon shine on Portugal’s own debt concerns, and that it may too require a similar bailout from the EU.
“The problems that pushed Ireland to ask for help could be part of a larger contagion that could touch a number of EU countries. This concern manifested itself as a stronger dollar, which led to selling in oil futures.” commented Peter Beutel of Cameron Hanover.
