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Technical Oil
Written by article default Friday, 14 October 2011 09:19
Morning Report : Crude Oil Futures for November Settlement
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Oil declined yesterday to trade below the 50 day SMA and printed a daily closing below the average, however trading is still indecisive and volatility is dominating intraday movement. In general, trading is near the main descending resistance shown on chart and Stochastic is within overbought area, therefore we might see a downside reversal, but we need confirmation over the longer time horizon; therefore we remain neutral for this morning awaiting more clear signals before the midday report.
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 | 84.00 | 83.30 | 82.10 | 81.35 | 80.50 |
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| Resistance | 84.50 | 85.30 | 86.15 | 86.60 | 87.35 |
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| Recommendation | Based on the charts and explanations above we recommend staying aside awaiting more confirmations. | ||||
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