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Technical Oil
Written by article default Friday, 03 June 2011 08:11
Morning Report for Crude Oil Futures for July Settlement
Oil fluctuated heavily, however, it was confined between the 38.2% Fibonacci retracement level at 100.70 and above the 61.8% retracement at 99.05, these retracements are the first and the second targets of the bearish Bat pattern we mentioned previously, stochastic tends to decline from overbought area, while the relative strength index is stable below 50.therefore, we expect a downside move for today, but wee need stability below 99.05 for these expectations to be confirmed.
The trading range for today is among the major support at 95.05 and the major resistance at 103.50.
The short term trend is to the downside with steady daily closing below 109.75 targeting 85.40.
| Support | 99.05 | 98.00 | 97.70 | 96.60 | 96.30 |
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| Resistance | 100.70 | 101.80 | 102.20 | 102.75 | 103.50 |
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| Recommendation | Based on the charts and explanations above our opinion is selling crude below 100.70 , and take profit in stages at 99.05,98.00 and 96,60. Stop loss with daily closing above 101.80 might be appropriate for today. | ||||
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