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Technical Oil
Written by article default Wednesday, 02 February 2011 14:20
Oil ReportMidday Report
In order to analyze crude’s behavior, we will return to the classic analytic school to see that crude returned below the key support for the bullish wave that is almost a wedge pattern. Crude is retesting the key support that has been breached before returning to the downside as expected for the rest of the day. Stochastic is attempting to crossover negatively supporting our bearish overview which requires stability below 92.60 with daily closing.
The trading range for today is among the key support around 86.75 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 | 90.50 | 90.00 | 89.85 | 89.05 | 88.60 |
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| Resistance | 91.35 | 91.85 | 92.60 | 92.80 | 93.10 |
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| Recommendation | Based on the charts and explanations above our opinion is selling crude around 91.35 targeting 87.30 and stop loss with daily closing above 92.60, might be appropriate. | ||||