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Technical Oil
Written by article default Wednesday, 20 July 2011 09:44
Morning Report
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The intraday correction yesterday was minor and limited to 96.85 areas very near from our awaited entry level, from there the commodity rallied to achieve the first target at 98.00 to reach the highest near 99.00 area. we can clearly see that oil has some trouble surpassing 98.70 area, where momentum indicators are clearly showing that; therefore we may see a deeper correction toward 97.70 area before the resumption of the upside move toward the highs near 99.50 and the initial target of the previously mentioned 5-0 pattern at 101.00. we have to mention that breaching 97.70 with four-hour closing may negate our scenario and extend the move within the recent range toward 96.70 and 95.00.
Trading range for the day is among the major support at 94.00 and the major resistance at 101.00.
The short term trend is to the downside with steady daily closing below 105.00, targeting 87.00.
| Support | 98.00 | 97.65 | 96.20 | 95.70 | 95.00 |
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| Resistance | 98.70 | 99.50 | 100.40 | 100.90 | 101.80 |
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| Recommendation | Based on the charts and explanation above we recommend buying oil around 97.70 targeting 99.30 and 101.00 , stop loss with four-hour closing below 97.50 may be appropriate | ||||
