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Technical Oil
Written by article default Tuesday, 16 August 2011 09:32
Morning Report for Crude Oil Futures for September Settlement
Yesterday's pullback was minor and limited to 84.35, as the commodity rallied again to reach 88.00 resistance area and the 50% Fibonacci correction level of the latest bearish wave. Currently, the commodity retreated to trade near 87.20. More bullish attempts are possible towards our target area among 91.00-89.00 and filling the latest gap encourage us to stay on the bullish side so long as trading is steady above 85.00.
Trading range for the day is among the major support at 83.00 and the major resistance at 91.00.
The short term trend is to the downside with steady daily closing below 100.00, targeting 65.00.
| Support | 87.10 | 86.40 | 85.90 | 85.00 | 84.30 |
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| Resistance | 88.10 | 89.00 | 89.60 | 90.40 | 91.00 |
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| Recommendation | Based on the charts and explanations above we recommend buying oil around 85.90 targeting 87.40 and 89.60. Stop loss with four-hour closing below 85.00 may be appropriate. | ||||