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Technical Oil
Written by article default Tuesday, 17 May 2011 11:27
Oil ReportMidday Report
Crude rebounded to the upside after reaching 96.60, as the neutral position on crude today was a right call. The inability to breach this level will drive crude higher in a new upside wave affected by the upside reversal on RSI. On the other hand, Stochastic is still negative and the Elliot scenario shows the possibility for the downside move to prevail. Therefore, we remain neutral today to see the reaction on crude after reaching 96.60 areas.
The trading range for today is among the major support at 92.00 and the major resistance at 102.20.
The short term trend is to the downside with steady daily closing below 109.75 targeting 85.40.
| Support | 96.60 | 95.05 | 94.30 | 93.80 | 93.45 |
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| Resistance | 97.70 | 98.50 | 99.40 | 99.85 | 100.40 |
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| Recommendation | Based on the charts and explanations above we recommend observing trading today awaiting more confirmations | ||||