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Technical Oil
Written by article default Wednesday, 03 August 2011 08:01
Oil Report
Morning Report for Crude Oil Futures for September Settlement
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The latest pullback yesterday was stopped at 95.50 and the commodity reversed sharply to reach the lowest near 93.00. Closing over daily basis below 94.60 and stabilizing below the 200 days SMA in addition to the 61.8% Fibonacci retracement of the latest bullish wave push us to expect more downside potential however due to some bullish divergence on RSI we may see some corrections.
Trading range for the day is among the major support at 89.60 and the major resistance at 98.00.
The short term trend is to the downside with steady daily closing below 105.00, targeting 87.00.
| Support | 93.10 | 92.70 | 91.50 | 90.50 | 89.70 |
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| Resistance | 93.50 | 94.00 | 95.00 | 95.60 | 96.50 |
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| Recommendation | Based on the charts and explanations above we recommend selling oil around 94.60 targeting 92.00 and 90.00. Stop loss with four-hour closing above 95.50 | ||||
