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Technical Oil
Written by article default Wednesday, 31 August 2011 07:43
Morning Report
Yesterday, oil has been able to reach our first detected technical target at 88.20, and was bout to touch our second target. Currently, oil is stable above the critical level of 88.20; however several resistances between 89.15-60 should be taken into consideration, because those levels could create downside corrections before rebounding to the upside again. Consolidation above 86.00 is necessary to keep our expectations valid, while we prefer stability above 87.60 to confirm our intraday positivity.
The trading range for today is among the major support at 85.00 and the major resistance at 91.10.
The short-term trend is to the downside with steady daily closing below 100.00 targeting 65.00.
| Support | 88.30 | 87.60 | 86.70 | 86.00 | 85.50 |
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| Resistance | 89.10 | 89.60 | 90.15 | 90.60 | 91.10 |
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| Recommendation | Based on the charts and explanations above our opinion is buying crude around 87.60 and take profit in three stages at (89.60, 91.10) and stop loss with 4-hour closing below 86.00 might be appropriate. | ||||
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