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Technical Oil
Written by article default Monday, 18 April 2011 18:15
Oil ReportMidday Report
Crude is dropping gradually and currently trading below 108.65 which if prevailed with four-hour closing confirms the completion of the retest for the main ascending channel’s support previously breached. Stochastic is still negative and RSI is gradually moving lower in an attempt to breach 50 points once again. Therefore, we hold onto our weekly expectations awaiting the four-hour closing for confirmations.
The trading range for this week is among the major support at 105.25 and the major resistance at 115.80.
The short term trend is to the upside with steady daily closing above 100.40 targeting 116.75.
| Support | 108.65 | 108..00 | 107.65 | 107.30 | 106.55 |
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| Resistance | 109.35 | 109.65 | 110.20 | 110.65 | 111.35 |
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| Recommendation | Based on the charts and explanations above our opinion is selling crude around 108.20 and take profit in stages at 107.20, 106.55 and 105.25 and stop loss with daily closing above 110.20 might be appropriate this week | ||||