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NYMEX HO (V20): Still Appears Top Heavy

OIL TECHS
  • RES 4: $1.3598 - High Mar 11
  • RES 3: $1.3394 - 38.2% retracement of the Jan - Apr decline
  • RES 2: $1.3192 - High Aug 5 and the bull trigger
  • RES 1: $1.2868 - High Aug 11
  • PRICE: $1.2675 @ 07:32 BST Aug 25
  • SUP 1: $1.2103 - Low Aug 21
  • SUP 2: $1.1903 - Low Jul 30 and a key reversal trigger
  • SUP 3: $1.1788 - Low Jun 29
  • SUP 4: $1.1257 - Low Jun 12

HO futures traded sharply lower Friday extending last week's pullback. Despite yesterday's bounce, the move lower Friday does highlight a potential developing bearish risk and attention is on the key support at $1.1903, Jul 30 low. A break here would confirm a top and pave the way for a deeper correction towards $1.1788, Jun 29 low. On the upside, initial firm resistance is seen at $1.2868, the Aug 11 high.

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