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Technical oil
Written by article default Wednesday, 14 December 2011 08:56
Morning Report: Crude Oil Futures for January Settlement
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Oil rallied to breach and settle above the neckline of the bullish double bottom formation at 99.60 as shown above, however, a short term descending resistance halted further incline, while the overall unfavored fluctuations among narrowing ranges continue. Steady trading back below the neckline may put the commodity under downside pressure again, on the other hand breaching the aforementioned descending resistance may extend gains, for now we remain on the sidelines.
The trading range for the day may be among the major support at 95.50 and the major resistance at 102.50.
The short-term trend is to the downside with steady weekly closing below 105.00 targeting 65.00.
**GMT+2 Candlesticks**
| Support | 99.70 | 98.90 | 98.30 | 97.50 | 97.00 |
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| Resistance | 100.30 | 101.25 | 101.70 | 102.40 | 103.00 |
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| Recommendation | Based on the charts and explanations above we recommend staying aside awaiting more confirmation. | ||||