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Technical Oil
Written by article default Monday, 23 May 2011 07:47
Weekly Report (May 23-27, 2011)
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We still believe that crude is still in the downside correction for the IM wave that ended as shown above. However, if we look back at our previous reports, until this moment 96.60 level remained intact, the secondary image shows how crude reacted and couldn’t set a daily closing below it; thus, providing a bullish candles formation. RSI is still neutral, while Stochastic crossed over negatively; nevertheless, we need a daily closing below 96.60 to confirm the downside move and accordingly we remain neutral and recommend following our daily reports for more details for crude's movement.
The trading range for this week is among the major support at 91.00 and the major resistance at 107.30.
The short term trend is to the downside with steady daily closing below 109.75 targeting 85.40.
| Support | 98.20 | 97.25 | 96.60 | 95.70 | 94.80 |
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| Resistance | 99.40 | 100.40 | 101.20 | 101.80 | 102.75 |
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| Recommendation | Based on the charts and explanations above our opinion is staying aside and observing trading for more confirmation might be appropriate this week. | ||||
