Cameron Hanover – Daily Energy Hedger – July 28, 2010

Oil prices sold off yesterday and it may well be that this complex has run out of time (to break to new highs). We mentioned yesterday that prices only had this week to break decisively over $79.60, its technical resistance, and that it was almost certainly going to need to break over $80.00 as well, which is more purely psychological resistance. Monday’s activity had been inconclusive and, by finishing unchanged, prices had left open the debate as to whether they were gathering strength for a final push to new recent highs or if they were simply unable to advance any further.