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Technical Oil
Written by article default Wednesday, 25 May 2011 07:35
Morning Report for Crude Oil Futures for July Settlement
Oil is still trading sideways, and areas of 97.70 and 96.60 remain steady with daily closing. Nevertheless, Stochastic tends to be negative and the RSI is neutral between 30 and 50, this contradiction makes us believe that the current correction may continue after the big decline that started after the end of the fifth wave shown above. Therefore, we still believe that oil will attempt to move to the upside again in clearer move before continuing the downside trend that started from 114.82.
The trading range for today is among the major support at 94.30 and the major resistance at 106.50.
The short term trend is to the downside with steady daily closing below 109.75 targeting 85.40.
| Support | 98.20 | 97.70 | 96.60 | 95.05 | 94.30 |
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| Resistance | 99.85 | 100.40 | 101.05 | 101.80 | 102.20 |
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| Recommendation | Based on the charts and explanations above our opinion is buying crude around 98.00 and take profit in stages at 101.80 and 102.75 and stop loss with daily closing below 97.00 might be appropriate | ||||
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