Light Sweet Crude Oil futures (Crude)
♦ In line with our expectation, the US Light Sweet Crude Oil futures plunged to below the UTL level near US$72 to a weekly low of US$64.24, but the commodity
staged a surprise rebound to close at US$70.04 on Friday.
♦ The rebound was timely as it formed a “hammer” candle, just below the key UTL, potentially indicating a technical rebound underway.
♦ If the buying support persists, the Crude will retest the 40-week SMA near US$76 and the key support-turnresistance level at US$78 in the near term.
♦ However, it must first recapture the UTL in early this week, to avoid the return of the selling momentum.
♦ If not, it will mean a derailment of the UTL and cause
Commodities & Currencies : Weakness Likely On The US Dollar…-24/05/2010
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