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Technical Oil
Written by article default Wednesday, 21 September 2011 08:16
Oil ReportMorning Report: : Crude Oil Futures November Settlement
A slight pullback to the upside grabbed the commodity to retest the breached support area among 87.00-88.00 where the breached ascending support of the wedge resides; the breached level should act as a good resistance to prevent more upside attempts that would invalidate the bearish formation. The bearish outlook for oil remains valid so long as 88.50 remain intact over four-hour basis. Downside targets start initially at 85.00. 83.00.
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.
A slight pullback to the upside grabbed the commodity to retest the breached support area among 87.00-88.00 area where the breached ascending support of the wedge resides; the breached level should act as a good resistance to prevent more upside attempt that would invalidate the bearish formation. The bearish outlook for oil remains valid so long as 88.50 remain intact over four-hour basis. Downside targets start initially at 85.00. 83.00.
| Support | 86.50 | 85.30 | 84.70 | 84.00 | 83.30 |
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| Resistance | 87.50 | 88.00 | 88.50 | 89.20 | 90.00 |
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| Recommendation | Based on the charts and explanations above we recommend selling oil around 87.50 targeting 85.50 and 83.00. Stop loss with four-hour closing above 88.50 | ||||
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