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Technical Oil
Written by article default Friday, 11 February 2011 12:02
Oil ReportMorning Report
Crude returned to the upside to trade around 87.30 once again. The bearish harmonic butterfly pattern is still intact and we expect more bearish movement over short term basis. Meanwhile, we will not rule out a bullish trend over intraday basis before returning within the original direction since the chances of forming a bullish harmonic crab pattern are still valid supported by Stochastic. Hence, we expect a bullish correctional move with stanility above 85.60 before hreturning to 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 | 86.75 | 86.15 | 85.60 | 85.00 | 84.70 |
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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 exiting yesterday’s recommendations and buying crude above 86.75 targeting 89.05 and stop loss below 85.60, might be appropriate. | ||||