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Technical oil
Written by article default Tuesday, 15 November 2011 10:22
Morning Report
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The awaited downside correction has started yesterday after touching 99.60 major resistance areas, where the 61.8% Fibonacci correction level -for the whole bearish trend that started from 115.00 top to 75.00 bottom- is located. The bearish divergence on RSI also indicated the potential downside correction; however, the commodity is still trading above the ascending trend line shown on the image, but in general, we think that there still some room for downside attempts towards the trend line and maybe the 50% Fibonacci level.
The trading range for the day is among the major support at 95.00 and the major resistance at 100.00.
The short-term trend is to the downside with steady daily closing below 100.00 targeting 65.00.
*The provided chart based on GMT+2*
| Support | 97.15 | 96.40 | 95.85 | 95.15 | 94.50 |
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| Resistance | 98.30 | 98.80 | 99.60 | 100.00 | 100.60 |
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| Recommendation | Based on the charts and explanations above we recommend selling oil around 98.30 targeting 97.30 and 95.00 . Stop loss with four-hour closing above 99.20 | ||||
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