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Technical Oil
Written by article default Wednesday, 27 July 2011 09:10
Morning Report for Crude Oil Futures for September Settlement
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After achieving our first target near 100.00, oil reversed sharply to breach 98.70 and record the lowest near 97.75 where it rebounded quickly again to breach the high at 100.15 and the descending resistance -colored in red- to reach 100.60; however it failed to stabilize above the trend line and quickly dropped to trade around 99.50 again as choppy trading dominated yesterday. RSI and MACD are gradually loosing upside momentum. Fluctuation may continue however we expect that the upside bias will continue as well, awaiting breaching the descending resistance again.
Trading range for the day is among the major support at 96.60 and the major resistance at 101.50.
The short term trend is to the downside with steady daily closing below 105.00, targeting 87.00.
Detailed Analysis for Crude Oil
| Support | 98.70 | 98.00 | 97.30 | 96.60 | 95.60 |
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| Resistance | 99.50 | 100.20 | 100.80 | 101.40 | 102.00 |
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| Recommendation | Based on the charts and explanations above we recommend buying oil around 98.40 targeting 100.00 and 101.30 Stop loss with four-hour closing below 98.00 | ||||
