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Technical Oil
Written by article default Thursday, 21 July 2011 13:19
Oil Report
Midday Report for Crude Oil Futures for September Settlement
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Range-trading continues, the commodity is stuck among the range bound shown in image above. Oil dropped during the past couple of hours to trade among the 50 days SMA and the 200 hours SMA and activated our morning scenario, this area may halt the downside move, it's pivotal and breaching it may change the outlook to intraday bearish and send the commodity lower towards the bottom of the channel.
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 | 97.00 | 96.30 | 95.60 | 95.00 | 94.00 |
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| Resistance | 98.00 | 98.70 | 99.20 | 99.60 | 100.40 |
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| Recommendation | Our morning scenario remains valid. We also recommend buying oil around 97.00 targeting 98.10,99.25 and 101.00, stop loss and reverse order with four-hour closing below 96.70 targeting 95.00 and 94.00, stop loss with hourly closing above 97.10 | ||||
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