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Technical Oil
Written by article default Friday, 14 January 2011 03:00
Oil ReportMidday Report
Crude was affected by the resistance area between 91.85 and 92.10, and started to lose bullish momentum to return and respond once again to the bearish butterfly pattern pointed out in our previous reports. Meanwhile, on the hourly chart, momentum indicators have reached oversold areas and signs of an ascending channel are starting to appear. We are in need of a breach of the key support level for this channel since yesterday to confirm the bearish trend and end the positivity by breaching 91.00. Sine crude is stable below 92.60, we hold onto our morning expectations.
The trading range for today is among the key support around 88.20 and the key resistance around 93.95.
The short term trend is expected towards the upside as long as trading is above 84.00 with targets at 99.00.
| Support | 91.00 | 90.80 | 90.50 | 90.00 | 89.85 |
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| Resistance | 91.85 | 92.10 | 92.60 | 93.10 | 93.65 |
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| Recommendation | Our morning expectations remain valid. | ||||