Technical Report:
The down trend continues with Friday posting the fifth day in a row with a lower close than opening level, a bearish indicator. We have been mentioning for a while that $130.50 was a significant support level and it proved so on Friday with the market bouncing off that level three times during the day and it took the last half hour of trading for the level to give way and leave us with a weak close. Technically there is far more resistance on the chart at this level than support.
The short term trend is down while the medium is sideways and long term trends remain bullish.


Support: $129.92 (yesterdays low) Resistance: $135.28 (40 day moving average)
Support: $127.23 (Low 06/06/08) Resistance: $135.14 (high of 22/05/08)
Support: $125.90 (high of 09/05/08) Resistance: $133.69 (yesterday’s high)


Summary:
The bleak technical picture is reflecting the effect of extremely high prices on demand. The bulls are now looking for tropical storms/hurricanes and an escalation in the Middle East tension to reignite the up trend but without any significant headlines with firm bullish sentiment we feel the technical picture will weigh heavy on the market and would expect a test of the $120 region.