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Technical oil
Written by article default Wednesday, 04 January 2012 10:10
Morning Report: Crude Oil Futures for February Settlement
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Crude has breached the critical resistance yesterday, and today, we expect the upside move to extend, where in addition to the breach of the mentioned resistance, the commodity is also stable above the top of (c) point of the bullish Butterfly harmonic pattern. Momentum indicators are positive now. We expect the price to test the pattern’s extended target, which represents 127.2% Fibonacci correction of the CD leg. A breach of 100.60 and closing below it could weaken our positive outlook.
The trading range for today is among the major support at 99.35 and the major resistance at 106.05.
The short-term trend is to the downside with steady daily closing below 105.00, targeting 65.00.
**New York Candlesticks**
| Support | 102.30 | 101.90 | 101.30 | 100.60 | 100.00 |
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| Resistance | 103.35 | 103.90 | 104.80 | 105.25 | 106.05 |
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| Recommendation | Based on the charts and explanations above our opinion is buying crude around 101.90 and take profit in stages at (103.35 and 105.70) and stop loss with daily closing below 100.60 might be appropriate. | ||||
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