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Technical Oil
Written by article default Tuesday, 07 June 2011 09:41
Morning Report for Crude Oil Futures for July Settlement
Oil is declining gradually, with a couple of four-hour candles closing below the 61.8% retracement at 99.05 and below the harmonic support which gives the possibility reaching 98.00, which is the first extended target of the pattern, breaching this level may extend the downside move to reach levels near the bottom of point C of the bearish Bat pattern. Stochastic is oversold which may result in heavy fluctuations, however trading below 100.70 keeps the downside move possible, while stability below 99.05 will keep the possibility of a more clear intraday downside move valid.
The trading range for today is among the major support at 94.95 and the major resistance at 102.75
The short term trend is to the downside with steady daily closing below 109.75 targeting 85.40.
| Support | 98.00 | 97.70 | 96.60 | 96.30 | 95.05 |
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| Resistance | 99.05 | 100.70 | 101.80 | 102.20 | 102.75 |
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| Recommendation | Based on the charts and explanations above our opinion is selling crude below 99.05 , and take profit in stages at 98.00 and 96,60. Stop loss with daily closing above 100.70 might be appropriate for today. | ||||
