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Technical Oil
Written by article default Friday, 19 August 2011 07:57
Morning Report for Crude Oil Futures for October Settlement
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Oil failed to reach our potential reversal zone around 90.00 and reversed earlier from 89.00 to invalidate yesterdays' scenario by breaching the rising wedge formation, the drop was significant and reached 80.60 as it breached all the important support levels and downside barriers. Therefore, we anticipate more bearish movement over intraday basis, however we hope that oversold conditions on momentum indicators signals a possible correction for entry with better risk-reward ratio.
Trading range for the day is among the major support at 75.00 and the major resistance at 85.00.
The short term trend is to the downside with steady daily closing below 100.00, targeting 65.00.
| Support | 80.75 | 80.00 | 79.50 | 78.90 | 78.30 |
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| Resistance | 81.70 | 82.50 | 82.80 | 83.70 | 84.50 |
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| Recommendation | Based on the charts and explanations above we recommend selling oil around 83.00 targeting 80.00 and 77.00 and stop loss with four-hour closing above 84.50 | ||||
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