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Technical Oil
Written by article default Wednesday, 12 January 2011 05:34
Trading is wedged between 89.85 and 88.60, which is not a clear intraday direction; Stochastic is still providing a bullish crossover, although RSI is leaning to the downside. The overall bearishness is still valid due to the effect of the harmonic formation, which has taken the form of a Butterfly pattern. This formation will prevail as long as trading remains below 90.50 and 92.60; over intraday basis it is critical that crude exits the highlighted range above and accordingly we remain neutral today awaiting more confirmations for the coming move.
The trading range for today is among the key support around 87.40 and the key resistance around 91.85.
The short term trend is expected towards the upside as long as trading is above 84.00 with targets at 99.00.
| Support | 89.05 | 88.60 | 88.20 | 87.75 | 87.40 |
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| Resistance | 89.85 | 90.00 | 90.50 | 90.80 | 91.35 |
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| Recommendation | Based on the charts and explanation above our opinion is remaining neutral and following up on daily reports on a primary basis, might be appropriate | ||||