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Technical Oil
Written by article default Wednesday, 08 June 2011 08:23
Morning Report for Crude Oil Futures for July Settlement
Oil touched the 76.4% Fibonacci retracement level of the CD leg for the bearish Bat pattern. Trading was confined between this level at 98.00 and the 61.8% retracement level at 99.05 after a four-hour closing between these levels. Stochastic is attempting a negative crossover below 50, while MACD is still negative. Therefore, we think that it's more likely that the downside movement will continue to test the bottom of point C around 96.35 trading below the harmonic support shown in image supports the down move.
The trading range for today is among the major support at 94.45 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 | 101.05 | 101.80 | 102.20 |
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| Recommendation | Based on the charts and explanations above our opinion is selling crude around 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. | ||||
