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Technical Oil
Written by article default Wednesday, 27 April 2011 17:46
Oil ReportMidday Report
Crude carried a new attempt to negate the harmonic crab pattern, signaling the possibility for crude to continue higher to the next PRZ D2 that forms the Butterfly pattern (not ideal) at 115.55. Trading above 112.45 is further confirmation for the upside move while trading above the suggested X point at 113.45 will be the final confirmation for this possibility.
The trading range for today is among the major support at 108.80 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 | 112.20 | 111.45 | 111.10 | 110.65 | 110.20 |
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| Resistance | 113.05 | 113.45 | 113.85 | 114.50 | 115.55 |
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| Recommendation | Based on the charts and explanations above our opinion is buying crude around 111.45 and take profit in stages at 113.05, and 115.55 and stop loss with four-hour closing below 109.75 might be appropriate | ||||