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Technical Oil
Written by article default Friday, 27 May 2011 09:19
Oil Report
Morning Report for Crude Oil Futures for July Settlement
Oil reversed to the downside yesterday to stabilize below the breached neckline of the bullish technical pattern we mentioned previously at 100.95. Trading closed above the critical support at 99.80 and this is what keeps the bullish scenario valid. Accordingly, we expect to see intraday bullishness today. However, two conditions have to be met to achieve that, a clear breach of the neckline at 100.95 and daily stability above 99.80.
The trading range for today is among the major support at 97.70 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 | 97.70 | 98.20 | 99.00 | 99.85 | 100.45 |
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| Resistance | 103.55 | 102.75 | 102.20 | 101.80 | 100.95 |
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| Recommendation | Based on the charts and explanations above our opinion is buying crude with one hour closing above 100.95 and take profit in stages at 102.75 and 103.55 and stop loss with daily closing below 99.80 might be appropriate | ||||
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