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Technical Oil
Written by article default Thursday, 30 June 2011 08:38
Morning Report for Crude Oil Futures for August Settlement
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The rebound after breaching the falling wedge extended to record the highest near 95.80; however oil is still struggling around the level and didn’t close over four-hour basis above the 95.50. Breaching the 200 days SMA and stabilizing above it hints possible bullishness; however this won't be confirmed unless there is a breach of the descending trend resisatance and 95.50 shown above. RSI over four-basis is overbought, suggesting possible correction at the current levels; therefore, we expect an intraday downside move.
Trading range for the day is among the major support at 90.00 and the major resistance at 98.00.
The short term trend is to the downside with steady daily closing below 105.00, targeting 87.00.
| Support | 95.00 | 94.50 | 93.60 | 93.20 | 92.60 |
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| Resistance | 95.65 | 96.50 | 97.10 | 97.60 | 98.00 |
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| Recommendation | Based on the charts and explanations above our opinion is selling oil around 95.50 targeting 94.30 and 92.80. Stop loss with four-hour closing above 95.70 may be appropriate | ||||
