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Technical Oil
Written by article default Thursday, 05 May 2011 08:43
Oil ReportMorning Report
Reviewing our report, and especially on Tuesday, we can see how crude reached the areas of 108.65 and accordingly negated the harmonic pattern. Now, crude breached the classic critical support and as well we have clear oversold signs on momentum indicators. This signals possible upside correction before returning to the downside due to the failure of the harmonic pattern and the breach of the support at 110.20. Therefore, we remain neutral for today as well due to the conflicting downside direction signals with momentum indicators trading in oversold areas.
The trading range for today is among the major support at 105.85 and the major resistance at 112.45.
The short term trend is to the upside with steady daily closing above 105.75 targeting 118.45.
| Support | 108.00 | 107.65 | 107.10 | 106.50 | 106.50 |
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| Resistance | 109.35 | 109.75 | 110.20 | 110.65 | 111.80 |
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| Recommendation | Based on the charts and explanations above we remain neutral awaiting more confirmations | ||||