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Technical Oil
Written by article default Wednesday, 09 February 2011 14:00
Oil ReportMidday Report
We recommend keeping an eye on crude since it is presently witnessing negativity from the butterfly pattern, highlighted in our morning report and previous other reports. In the image above over hour basis, the harmonic pattern is as close as it can be to a crab pattern formation. This formation will be completed around 85.60, following some possible bullish correction then return within the original bearish trend targeting 84.30, which is considered to be the initial target for the harmonic butterfly pattern (review morning report). We expect a bearish intraday direction to dominate the movement trading today.
The trading range for today is among the key support around 84.30 and the key resistance around 91.35.
The short term trend is expected towards the upside as long as trading is above 84.00 with targets at 99.00.
| Support | 86.75 | 86.15 | 85.80 | 85.00 | 84.60 |
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| Resistance | 87.35 | 87.75 | 88.20 | 88.60 | 89.05 |
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| Recommendation | Based on the charts and explanations above our opinion is selling crude around 87.30 targeting 84.30 and stop loss with a daily closing above 89.85, might be appropriate. | ||||