Members login
Technical oil
Written by article default Friday, 06 January 2012 08:50
Morning Report: Crude Oil Futures for February Settlement
|
|
The bearishness seen yesterday stopped in areas above 100.60, which in result means that the downside movement seen was only a correction to retest the previously breached resistance level. The mentioned resistance, which turned into support now, is related to the bullish continuation technical pattern. This pattern supports resuming the upside move, affected by the Butterfly harmonic pattern.
The trading range for today is among the major support at 98.00 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 | 100.60 | 100.00 | 99.35 | 98.50 | 98.00 |
|
|
|||||
| Resistance | 101.30 | 101.90 | 102.30 | 103.35 | 103.90 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is buying crude above 100.60 and take profit in stages at (102.30 and 103.35) and stop loss with daily closing below 99.35 might be appropriate. | ||||
|
||||||||||||