Crude Oil may go to USD63-65 in the next few weeks

The price of crude oil has continued to slide as geopolitical risk recedes with the conclusion of the senseless war in Lebanon as well as seemingly milder hurricanes in the Gulf of Mexico for this year. The recent discovery of a vast petroleum pool roughly four miles beneath the ocean floor [in the Gulf of Mexico] which could hold between 3 billion and 15 billion barrels of oil and natural gas liquids has not helped the sentiment for crude oil.

From the 3 charts below, we can see that the support for crude oil would lie somewhere between USD63-65 in the comming weeks. From Chart 1, we have plotted the long-term uptrend line for crude oil & we can see support at USD63. From Chart 2 which is overlaid with the Bollinger Bands [20,2] & Parabolic [20,20,200], we see that some support between USD63 & USD65 for crude oil. Finally, the 18-day MA would provide support at USD65.





















Chart 1: Crude Oil's monthly chart as at Sep 7






















Chart 2: Crude Oil's monthly chart (overlaid with Bollinger Bands & Parabolic) as at Sep 7






















Chart 3: Crude Oil's monthly chart (overlaid with 4-, 9- & 18-day MA) as at Sep 7