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Technical Oil
Written by article default Thursday, 11 August 2011 08:31
Morning Report for Crude Oil Futures for September Settlement
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The ascending triangle we mentioned yesterday continues to contain oil trading, and the commodity is pushing to the upside to trade just below the resistance of the triangle. However, it is approaching the apex of the triangle and this hints less reliablity for the formation, we need the breach to happen within the next few hours to count on it. Breaching the descending resistance (trend line) shown in image supports our bullish expectations.
Trading range for the day is among the major support at 77.00 and the major resistance at 88.50.
The short term trend is to the downside with steady daily closing below 100.00, targeting 65.00.
| Support | 81.90 | 81.00 | 80.60 | 80.00 | 79.70 |
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| Resistance | 82.40 | 83.00 | 83.70 | 84.50 | 85.30 |
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| Recommendation | Based on the charts and explanations above we recommend buying oil with hourly closing above 82.90 targeting 85.20 and 88.00. Stop loss with hourly closing below 82.50 may be appropriate. | ||||