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Technical Oil
Written by article default Monday, 14 February 2011 18:54
Oil ReportMidday Report
Crude slightly inclined according to our weekly recommendations, where crude is expected to retest levels between 86.15 and 87.30 before heading to the downside to retest the first awaited target for the harmonic butterfly pattern around 84.30. Stochastic is giving off oversold signs that could pave the way to a slight bullish correction. Note: the bearish trend could continue before a bullish correction is achieved and thereby highlighting the importance of keeping an eye on our recommendations below.
The trading range for this week is among the key support around 83.65 and the key resistance around 88.20.
The short term trend is expected towards the upside as long as trading is above 84.00 with targets at 99.00.
| Support | 85.00 | 84.70 | 84.30 | 83.65 | 82.75 |
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| Resistance | 86.15 | 86.70 | 87.30 | 87.75 | 88.20 |
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| Recommendation | Based on the charts and explanations above our opinion is selling crude around 86.15 targeting 84.30 and stop loss with a daily closing above 87.30, might be appropriate. The recommendation is cancelled out if it touches the target, then moving the stop loss to the entry point. | ||||