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Technical Oil
Written by article default Thursday, 10 February 2011 19:05
Oil ReportMidday Report
Crude descended due to the bearish butterfly pattern’s effect that is currently pushing it towards breaching 87.30, and thereby retesting levels around 74.30 is highly expected. The bearish trends is dominating intraday trading, but keep an eye on crude around 85.60 since this level could cause some fluctuation and some bullish correction before resuming the bearishness.
The trading range for today is among the key support around 84.30 and the key resistance around 90.50.
The short term trend is expected towards the upside as long as trading is above 84.00 with targets at 99.00.
| Support | 86.15 | 85.60 | 85.00 | 84.70 | 84.30 |
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| Resistance | 87.30 | 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. | ||||