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Technical Oil
Written by article default Friday, 01 July 2011 09:37
Morning Report for Crude Oil Futures for August Settlement
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After testing 95.50 area more than once yesterday, oil reversed to the downside to achieve our first downside target twice. The 95.50 area halted any upside attempt for oil yesterday, as it’s a very important resistance area, due to the descending resistance of the possible falling wedge formation (shown in red) and not yet breached, in addition to a horizontal previous support turned now into a good resistance. However stability above the 200 days SMA in addition to the possible falling wedge formation hints possible bullishness and a further rebound from current levels. Depending on these technical facts, we will remain neutral until we see a breach of 95.50 level over four-hour basis to turn bullish.
Trading range for the day is among the major support at 90.00 and the major resistance at 100.00.
The short term trend is to the downside with steady daily closing below 105.00, targeting 87.00.
Dow Jones and S&P Technical Outlook
| Support | 94.30 | 93.35 | 92.80 | 92.30 | 91.50 |
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| Resistance | 95.00 | 95.50 | 96.20 | 97.05 | 98.60 |
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| Recommendation | Based on the charts and explanations above our opinion is buying oil with four-hour closing above 95.60 targeting 97.50 and 100.00. Stop loss with four hour closing below 95.30 may be appropriate | ||||
