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Technical Oil
Written by article default Friday, 12 August 2011 07:57
Morning Report for Crude Oil Futures for September Settlement
After breaching the top of the ascending triangle oil touched 84.40 before dropping again to test the ascending support(trend line) of the triangle and resume from there the bullish move toward 86.00 area. Stabilizing back above 83.00 area is a good bullish sign. However, we need stability above 85.00 again to confirm any move toward 89.50 pivot. For now, we expect to witness another attempt to the upside for a possible retest of 86.00 area.
Trading range for the day is among the major support at 81.00 and the major resistance at 89.60.
The short term trend is to the downside with steady daily closing below 100.00, targeting 65.00.
| Support | 84.50 | 83.90 | 83.30 | 82.60 | 81.80 |
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| Resistance | 84.80 | 85.40 | 86.00 | 86.40 | 87.00 |
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| Recommendation | Based on the charts and explanations above we recommend buying oil around 83.90 targeting 85.50 and 88.00. Stop loss with four-hour closing below 83.00 may be appropriate. | ||||