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Technical Oil
Written by article default Thursday, 10 March 2011 10:59
Oil ReportMorning Report
Crude has been attempting to stabilize above 105.40 for two consecutive days and so far with no luck! This level represents 127% correction of CD leg from the harmonic formation. Meanwhile, the percentage of the leg corrections support our expectations that those areas are not enough to complete the harmonic pattern, since the formation is close to a crab pattern that is near completion at D3 point around 108.00. Hence, we hold onto the positive expectations and chances of a bullish move that will prevail with stability above 105.40 with four hour closing.
The trading range for today is among the key support around 100.40 and the key resistance around 108.00.
The short term trend is expected towards the upside as long as the daily closing is above 98.00 with targets at 113.35.
| Support | 104.00 | 103.70 | 102.75 | 102.20 | 101.80 |
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| Resistance | 105.40 | 106.85 | 107.30 | 108.00 | 109.75 |
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| Recommendation | Based on the charts and explanations above our opinion is buying crude around 104.00 targeting 108.00 and stop loss with a four hour closing below 102.70, might be appropriate. | ||||