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Technical Oil
Written by article default Tuesday, 30 August 2011 08:08
Morning Report for Crude Oil Futures for October Settlement
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After more then a week of fluctuations among 86.00-83.00 areas, the commodity managed to breach the awaited resistance around 86.00 to rally and print a high of 87.70. Areas of 87.50 is a noticeable resistance level, therefore we may see a pullback to retest the breached 86.00 area before heading again to the upside. Initial targets reside at the blue shaded area among 89.00-90.00 levels, which is pivotal for the continuation of the upside move towards the descending trend line and 95.00 areas.
Trading range for the day may be among the major support at 83.00 and the major resistance at 90.00.
The short term trend is to the downside with steady daily closing below 100.00 targeting 65.00.
| Support | 86.70 | 86.00 | 85.50 | 85.00 | 84.40 |
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| Resistance | 87.60 | 88.30 | 89.10 | 89.60 | 90.60 |
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| Recommendation | Based on the charts and explanations above we recommend buying oil around 86.40 targeting 88.20 and 89.60. Stop loss with four-hour closing below 85.50. | ||||
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