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Technical Oil
Written by article default Thursday, 16 June 2011 09:11
Morning Report for Crude Oil Futures for July Settlement
Oil declined to reach the first potenial reversal zone of the butterfly pattern shown on the right of the chart. With this decline oil acheived the 127% extended target of the CD leg of the Bat pattern shown on the left, for now we might see an upside rebound affected by the completed bullish butterfly pattern, while a breach over four-hour basis below 94.45 may extend the downside move toward 92. Momentum indicators are within oversold areas which gives the rebound more support.
The trading range for today is among the major support at 92.00 and the major resistance at 99.05.
The short term trend is to the downside with steady daily closing below 109.75 targeting 85.40.
| Support | 95.05 | 94.45 | 93.80 | 93.45 | 92.00 |
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| Resistance | 96.30 | 96.60 | 97.70 | 98.00 | 99.05 |
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| Recommendation | Based on the charts and explanations above our opinion is buying crude around 94.45 and take profit in stages at 96.60 and 98.25.Stop loss with daily closing below 93.80 might be appropriate for today | ||||
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