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Technical Oil
Written by article default Tuesday, 13 September 2011 07:58
Morning Report : Crude oil futures for October settlement
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Oil rallied again after touching the ascending support of the wedge formation (colored in red) to invalidate the intraday bearish outlook we suggested yesterday, where it breached 87.50 pivot. The trading range among the formation is getting narrower, hinting that a breakout is over the horizon. The commodity is currently trading near the resistance level of the formation and the main descending resistance for the main downside move that started from the top at 115.00, where RSI is neutral. Therefore, we remain neutral this morning awaiting a directional breakout.
The trading range for the day is among the major support at 83.00 and the major resistance at 92.00.
The short-term trend is to the downside with steady daily closing below 100.00 targeting 65.00.
| Support | 87.50 | 86.50 | 85.50 | 83.50 | 83.00 |
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| Resistance | 89.20 | 90.00 | 90.50 | 91.25 | 92.00 |
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| Recommendation | Based on the charts and explanations above we recommend staying aside awaiting more confirmations. | ||||
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