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Technical Oil
Written by article default Friday, 08 July 2011 11:23
Midday Report for Crude Oil Futures for August Settlement
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Oil failed to stabilize above 99.00 yesterday, to trade among 98.30-99.00 before breaching 98.30 within the past hour, to reach around 97.90. We mentioned the importance of 97.70 areas in determining the next intraday direction for the commodity as well as 99.00 on the upside, and due to the possible high volatility during the NFP release; we will hold onto our positive morning expectations however we need a four-hour closing above 99.00 to confirm the upside move, otherwise we will remain neutral.
Trading range for the day is among the major support at 93.00 and the major resistance at 102.50.
The short term trend is to the downside with steady daily closing below 105.00, targeting 87.00.
| Support | 97.75 | 97.20 | 96.50 | 95.85 | 95.40 |
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| Resistance | 99.00 | 99.60 | 100.10 | 100.70 | 101.20 |
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| Recommendation | Based on the charts and explanation above we recommend buying oil with four-hour closing above 99.00 targeting 101.50 and 102.50. Stop loss with hourly closing below 98.80. | ||||
