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Technical Oil
Written by article default Monday, 06 June 2011 07:25
Weekly Report (06-10 June, 2011) for Crude Oil Futures for July Settlement
Despite reaching the first extended target at 98.00 -the 76.4% of CD leg- crude is still under the effect of the bearish Bat pattern due to stability below the 38.2% Fibonacci retracement of the CD leg of the pattern. Stochastic is negative and therefore, we think that oil will attempt to move to the downside this week in another attempt to stabilize below the rising support connecting the bottoms of points A and C, stability below this level will support crude in reaching the extended targets for the harmonic pattern.
Trading range for the week is among the major support at 93.15 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 | 95.70 | 96.60 | 97.25 | 98.00 | 99.40 |
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| Resistance | 103.60 | 102.75 | 101.80 | 101.20 | 100.40 |
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| Recommendation | Based on the charts and explanations above our opinion is selling crude around 100.40 , and take profit in stages at 98.00,96.60 and 94.45. Stop loss with daily closing above 103.60 may be appropriate for this week. | ||||
