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Technical Oil
Written by article default Tuesday, 11 October 2011 09:13
Morning Report : Crude Oil Futures for November Settlement
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The commodity settled above 85.60 and the 50 days SMA along with the descending resistance, thus invalidating our suggested scenario for yesterday. Price is attemtpting to stabilize above these technical barriers and also the 61.8% Fibonacci correction level, and this may lead to an attempt toward the main descending trend line which have protected oil's trading since may and from the major highs near 115.00. Accordingly, trading within this range will push us to remain aside and monitor trading for more confirmations.
The trading range for the day is among the major support at 82.00 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 | 85.00 | 84.00 | 83.30 | 82.90 | 81.80 |
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| Resistance | 86.00 | 86.50 | 87.30 | 88.00 | 88.80 |
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| Recommendation | Based on the charts and explanations above we recommend staying aside awaiting more confirmations. | ||||