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Technical Oil
Written by article default Tuesday, 20 September 2011 09:36
Morning Report: : Crude Oil Futures November Settlement
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As shown on the chart, oil dropped to breach the 86.50 ascending support of the wedge formation as the awaited breakout finally materialized. Currently, Stochastic is clearly oversold, however, it crossed over positively within oversold area. Therefore, we might see a pullback to retest the breached support area before resuming the downside move over intraday basis. Trading back above 88.00 shall threaten the reliability of the breakout.
The trading range for the day is among the major support at 80.00 and the major resistance at 88.50.
The short-term trend is to the downside with steady daily closing below 100.00 targeting 65.00.
| Support | 85.20 | 84.50 | 83.50 | 83.00 | 82.00 |
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| Resistance | 86.20 | 86.50 | 87.00 | 87.50 | 88.00 |
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| Recommendation | Based on the charts and explanations above we recommend selling oil around 87.00 targeting 85.10 and 83.00. Stop loss with four hour-closing above 88.00 | ||||
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