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Technical oil
Written by article default Tuesday, 20 December 2011 07:40
Morning Report: Crude Oil Futures For February Settlement
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The commodity is fluctuating within narrow ranges and below the retest level at 95.00, settling below the 200-days SMA and the aforementioned breached support level hint further downside attempts could be seen. Accordingly, we expect downside pressure in addition to heavy fluctuations to continue as market volume is expected to decline within the holiday period. Steady trading below 95.50-96.00 is required for the downside bias to remain intact.
The trading range for the week may be among the major support at 90.00 and the major resistance at 96.00.
The short-term trend is to the downside with steady daily closing below 105.00, targeting 65.00.
| Support | 94.30 | 93.90 | 93.50 | 93.00 | 92.50 |
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| Resistance | 94.75 | 95.25 | 96.00 | 97.50 | 97.00 |
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| Recommendation | Based on the charts and explanations above our opinion is selling crude around 95.30 and take profit at 94.00 and 92.50 stop loss with 4-hour closing above 96.00 might be appropriate. | ||||
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