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Technical Oil
Written by article default Thursday, 06 January 2011 03:56
Oil ReportMidday Report
Crude settled for 89.40 instead of 89.85 as it sharply moved to the downside again due to the harmonic bearish butterfly pattern. If stability is achieved below 89.05 is might be enough to push crude towards retesting 87.50 levels quickly, and breaching the latter confirms the continuation of the bearish move towards 38.2% correction (the first harmonic formation target) at 84.30.
The trading range for today is among the key support around 86.60 and the key resistance around 92.60.
The short term trend is expected towards the upside as long as trading is above 84.00 with targets at 99.00.
| Support | 88.20 | 87.75 | 87.35 | 86.60 | 86.10 |
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| Resistance | 88.75 | 89.05 | 89.75 | 90.00 | 90.50 |
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| Recommendation | Based on the charts and explanations above our opinion is selling crude around 89.05 targeting 86.60 and stop loss with daily closing above 90.50, might be appropriate. | ||||