This chart shows the positive correlation that the oil has kept with the Dow Jones Index for the last two years. Both of them have shared the same falling structure and they are equally developing their respective uptrends.
However, in March 2010 it has emerged a substantial difference between Wall Street´s most representative Index and the dubbed "black gold". As the Dow Jones has been able to overtake the former resistance of 10.750 points, which was reached by the twentieth of January, the commodity has appeared to be too weak to go through its equivalent level. So far, the area of 84 dollars has behaved as a difficult hurdle to be cleared.
The technical situation analysis allows to establish a hypothetical scenario for the coming weeks: if the Dow Jones has been successful in achieving the goal of going through its analogous resistance, maybe the oil could do it as well.
The market is waiting for important economic data. On the one hand, on Wednesday it will be published the ADP National Employment Report, which is a measure of employment from an anonymous sample of about 500,000 U.S. business clients. On the other hand, on Friday, investors will know the non-farm payroll and the unemployment rate in United States.
Both of them could encourage or disappoint the current market sentiment, depending on the final figures. In any case, these data can play a crucial role in terms of knowing the result of the struggle that the oil keeps against the level of 84 dollars.
The technical recommendation is to open long positions if the oil overtakes the area of 84.80 dollars. It´s advisable to set a stop loss in 79.00.
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