Technical Report:

We saw an ‘inside day’ day yesterday, but only just. We were 12c off the previous day’s high and 27c above the low. An inside day indicates indecision and if following a trend would suggest a continuation of that trend. As yesterday’s action followed a week of falling prices we feel that the current chart pattern should be read as bearish. The double bottom of the past two days will act as strong support and will be a target for the next move.
The short term trend is down while the medium is sideways and long term trends remain bullish.


Support: $130.19 (yesterdays low) Resistance: $ 135.42 (40 day moving average)
Support: $129.92 (Low 18/07/08) Resistance: $ 135.14 (high of 22/05/08)
Support: $127.23 (low of 06/06/08) Resistance: $ 133.69 (high of 18/07/08)


Summary:

With the bullish background of the storm/hurricane season and the geopolitical risk premium this market is struggling to spark life back into the rally. The tropical storm ‘Dolly’ is not likely to hit the Gulf of Mexico and the negotiators of the Iran nuclear debate have asked Turkey to act as a mediator. It took a statement from OPEC stating that they will not increase production to rally prices for a strong close late in the day but that statement must be viewed with the fact that high prices are hitting hard and demand is falling anyway.