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Technical Oil
Written by article default Thursday, 21 April 2011 12:46
Oil ReportMidday Report
Once again, we will suggest a number of harmonic possibilities. The start is with the bat pattern that completes at 112.45, and the second in a butterfly patter that completes at 115.55 and last is the crab pattern that completes at 118.45. The butterfly pattern is the weakest option as it is not ideal due to the correction of AB from XA, yet should be taken into consideration. The breach of 112.45 is essential for our expectations today as the breach is required to negate the bearish bat pattern and with the breach of 112.45 the upside move might continue for the rest of the day. Stability above 109.75 is essential for the bullishness to remain intact.
Note: Areas of 109.75 was set as the first target for the Bat pattern if confirmed and its stability does not negate the other patterns, yet its breach alters the direction and confirms the extension of the bat pattern targets.
The trading range for today is among the major support at 107.65 and the major resistance at 115.70.
The short term trend is to the upside with steady daily closing above 98.00 targeting 113.35.
| Support | 111.40 | 110.65 | 110.20 | 109.75 | 109.35 |
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| Resistance | 112.45 | 113.05 | 114.50 | 115.45 | 115.70 |
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| Recommendation | Based on the charts and explanations above our opinion is buying crude around 111.40 and take profit in stages at 113.05, and 115.30 and stop loss with four-hour closing above 109.75 might be appropriate | ||||