Technicals | Aug 13 2010
By Rudi Filapek-Vandyck
The TechWizard has been closely observing the oil futures market this week. He has noted price support has been very weak as global risk appetite took a few steps back on more weak economic indicators.
Right now, reports the Wizard, crude oil futures are sitting on a trending line on weekly price charts. If this trendline breaks down to the downside he believe accelerated selling should be expected, potentially sending the price down to US$65/bbl.
Various market indicators tell the Wizard the rally into August that took oil futures above US$80/bbl was a very weak one. His current bias is thus to the downside.
The TechWizard is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au The views expressed are his and not FNArena's (see our disclaimer).