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Technical Oil
Written by article default Tuesday, 28 June 2011 08:02
Morning Report for Crude Oil Futures for August Settlement
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Oil bounced once more from 89.60-89.80 area to achieve our first target at 90.70, however it recorded the highest near 91.40 then dropped back again to trade within the narrow range below 91.00. If we examine the four-hour timeframe, we can see that oil might be forming a possible falling wedge formation and RSI is signaling a bullish divergence, this indicates a possible continuation of the upside move. Nevertheless, oil dropped quickly below 91.00 and didn’t stabilize above this level, and therefore, we will stay aside this morning awaiting more confirmations during the upcoming hours.
Trading range for the day is among the major support at 87.00 and the major resistance at 95.00.
The short term trend is to the downside with steady daily closing below 105.00, targeting 87.00.
| Support | 90.50 | 89.70 | 88.90 | 88.50 | 87.50 |
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| Resistance | 91.40 | 92.30 | 93.30 | 94.50 | 95.00 |
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| Recommendation | Based on the charts and explanations above our opinion is staying aside awaiting more confirmations | ||||
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