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Technical oil
Written by article default Tuesday, 03 January 2012 08:59
Morning Report: Crude Oil Futures for Febreuary Settlement
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Crude inclines approaching the critical resistance shown above at 101.30, while the exponential moving average 20 was able to stop crude from extending the upside move. Stabilizing above 100.60 and a break of 101.30 could support crude to incline further affected by the extension of the bullish harmonic pattern’s targets as shown above on the chart. Stochastic provided a positive crossover above the 50 point level, while the Relative Strength Index is also stable above this level.
The trading range for today is among the major support at 97.65 and the major resistance at 103.90.
The short-term trend is to the downside with steady daily closing below 105.00, targeting 65.00.
**New York Candlesticks**
| Support | 100.00 | 99.35 | 98.50 | 98.00 | 98.65 |
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| Resistance | 101.30 | 102.30 | 102.70 | 103.45 | 103.90 |
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| Recommendation | Based on the charts and explanations above our opinion is buying crude around 100.60 and take profit in stages at (101.35 and 102.70) and stop loss with 4-hour closing below 99.35 might be appropriate. | ||||
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