Last week September Crude Oil opened at $87.52 and closed the week at $91.83.
Looking back at the price action on the daily chart below, look at Thursday, June 28 as crude closed that day at $78.10. The following day, Friday, June 29 September crude closed at $85.37, climbing $7.27 on the exiting news from the EU summit that EU officials had a plan in place to solve the debt crisis. I was shocked at all of the markets responding the way they did that day, after all how many plans have been agreed upon in the last two-plus years that really never got off the ground — 15?, 20? June 29 was a day of unjustified exuberance. Just look at the EU today.
Technically on the daily chart we see the crude move up from $84 has become a strong trend with ADX at 37.4 and will drop with today’s price action. MACD is bullish but dropping divergence today and Stochastics were in deep overbought territory but are coming down from there today.
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