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Technical Oil
Written by article default Friday, 01 April 2011 18:27
Oil ReportMidday Report
Crude is trading steadily above 106.55, which makes the harmonic pattern highlighted this week and the previous one expect to end with the first target being achieved around 103.20 (we recommend reviewing our weekly reports for this week and last week’s). We currently expect to witness the upside channel resume due to the retest of levels reaching 109.60 initially, and the SMA’s that prove it via its positive crossover. On the other hand, momentum indicators are showing major overbought signs that make us expect to remain neutral today as we await to insure stability above 106.55, while momentum indicators exit overbought regions at the same time.
The trading range for today is among the key support around 103.75 and the key resistance around 110.20.
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 | 106.55 | 106.30 | 106.00 | 105.85 | 105.25 |
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| Resistance | 107.30 | 108.00 | 108.45 | 109.60 | 110.20 |
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| Recommendation | Based on the charts and explanation above our opinion is remaining neutral until signs appear and insure its upcoming direction. | ||||