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Technical Oil
Written by article default Tuesday, 19 April 2011 12:01
Oil ReportMidday Report
Moving to the June contract, the conditions for crude did not differ much as the possible harmonic butterfly pattern remains seen since its formation from the bottom recorded on March 29, 2011 at 102.75. Stability below 108.70 signals further downside movement to continue the CD leg of the pattern which might be completed at 99.85 in the coming period. For today, the high volatility is possibly as Stochastic enters oversold areas; nevertheless, it might not be a barrier especially if 105.65 is breached with stability below it.
The trading range for today is among the major support at 103.30 and the major resistance at 111.40.
The short term trend is to the upside with steady daily closing above 98.00 targeting 113.35.
| Support | 106.50 | 106.05 | 105.65 | 105.25 | 104.80 |
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| Resistance | 107.10 | 107.65 | 108.00 | 108.70 | 109.35 |
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| Recommendation | Based on the charts and explanations above our opinion is selling crude around 107.65 and take profit in stages at 106.55, and 105.25 and stop loss with four-hour closing above 108.70 might be appropriate | ||||