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Technical Oil
Written by article default Wednesday, 01 June 2011 11:32
Midday Report for Crude Oil Futures for July Settlement
103.50 level proved its strength, it’s the 88.6% Fibonacci retracement of the XA leg for the suggested harmonic structure, it's also almost the 127.2% extension of BC leg. The occurrence of these levels together hints a very possible bearish Bat pattern, and since momentum indicators support the possibility of a downside correction where price is not able to breach 103.50 and 104.60, we will move from neutrality to expect a downside move today, potential targets for the harmonic pattern are the 38.2% retracement at 100.70 and the 61.8% retracement at 99.05 of the CD leg.
The trading range for today is among the major support at 98.20 and the major resistance at 105.85.
The short term trend is to the downside with steady daily closing below 109.75 targeting 85.40.
| Support | 102.20 | 101.80 | 101.05 | 100.40 | 99.85 |
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| Resistance | 103.50 | 104.30 | 104.60 | 105.25 | 106.05 |
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| Recommendation | Based on the charts and explanations above our opinion is selling crude below 103.00 and take profit in stages at 101.80, 100.70 and 99.05. Stop loss with daily closing above 104.60 might be appropriate | ||||
