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Technical oil
Written by article default Thursday, 29 December 2011 08:53
Morning Report: Crude Oil Futures For February Settlement
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Oil dropped sharply after testing the descending resistance mentioned yesterday, to find a support at the previously breached descending resistance around 99.10 and below our first downside target. Stochastic is attempting to crossover negatively, while trading below 99.00 level may push for further losses for the commodity for a possible test of the 97.50 support level. In general, we expect further downside pressure so long as trading remains below 101.50 over daily closing basis.
The trading range for the day may be among the major support at 96.50 and the major resistance at 103.45.
The short-term trend is to the downside with steady daily closing below 105.00, targeting 65.00.
| Support | 99.35 | 98.50 | 98.00 | 97.50 | 96.75 |
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| Resistance | 99.80 | 100.20 | 100.60 | 101.50 | 102.30 |
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| Recommendation | Based on the charts and explanations above our opinion is selling crude around 100.60 and take profit at 99.35 and 97.50 stop loss with daily closing above 101.50 might be appropriate. | ||||
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