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Technical Oil
Written by article default Tuesday, 05 April 2011 14:52
Oil ReportMidday Report
Crude descended, while we await for more downside movement with attempts to regain bullish momentum once again after momentum indicators exited overbought areas. Stability is above 106.55, which maintains our bullish overall direction despite of that we do not rule out more correction to end the negativity appearing on RSI 14, but after ridding of the negativity on the indicator the classical upside channel will return to push crude upwards once again.
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 | 107.30 | 106.55 | 106.00 | 105.85 | 105.25 |
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| Resistance | 108.00 | 108.70 | 109.60 | 110.20 | 111.35 |
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| Recommendation | Based on the charts and explanations above our opinion is buying crude around 106.55 targeting 110.20 and stop loss with a daily closing below 105.25, might be appropriate. | ||||