Market and product
Crude oil charts indicate bearish divergence, target $90/barrel
Crude oil prices are facing strong resistance from the $103-$105 level. And even though fundamental factors are very bullish for oil prices, this resistance zone has thwarted any further advance for the past 2 months.
Fundamentals
-EU decided to ban oil imports from Iran, with effect from July 01 2012
-South Sudan's oil exports have been blocked by its neighbour Sudan
-US economic indicators have been beating market expectations
-China's growth, though slow, has been in line with investor expectations
-Saudi Arabia clearly wants oil price around $100/barrel, as stated by Oil minister Al-Naimi.
Technically, watch out for the long-term resistance line (orange) and the horizontal resistance (red). The RSI is exhibiting a negative divergence, at a time when two consecutive price peaks were at nearly the same level. This is a bearish indication. Major support is seen at $90/barrel.
