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Technical Oil
Written by article default Wednesday, 28 September 2011 10:25
Midday Report: Crude Oil Futures for November Settlement
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Unfortunately, the downside correction was limited to levels near 82.50 above our targeted entry area around 82.00, anyhow , again the commodity rallies above 84.00 and toward the critical 85.00 resistance which if taken will open the door toward further incline and 88.00. We expect the level –along with the 50 period SMA - to halt further incline at least over intraday basis, and put price under downside pressure again.
The trading range for the day is among the major support at 80.00 and the major resistance at 85.75.
The short-term trend is to the downside with steady daily closing below 100.00 targeting 65.00.
| Support | 83.50 | 82.50 | 81.75 | 80.90 | 79.60 |
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| Resistance | 84.15 | 84.75 | 85.00 | 86.00 | 86.60 |
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| Recommendation | Based on the charts and explanations above we recommend selling oil around 85.20 targeting 83.20 and 81.75. Stop loss with four-hour closing above 85.75 | ||||
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