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Technical oil
Written by article default Tuesday, 17 January 2012 07:12
Morning Report: Crude Oil Futures for February Settlement
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The commodity is attempting to the upside again, currently testing 100.50 resistance areas, while momentum indicators are showing a bearish divergence. The latest test of the ascending trend-line shown on image may push the commodity a bit higher; however, we maintain the bearish outlook for oil so long as 103.35 remain intact. 98.30 support is the main level to watch to the downside, while 101.75 should limit any further incline for oil over intraday basis.
The trading range for the day is expected among the major support at 95.50 and the major resistance at 102.40.
The short-term trend is to the downside with steady daily closing below 105.00, targeting 65.00.
| Support | 100.00 | 99.30 | 98.50 | 97.60 | 96.70 |
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| Resistance | 100.30 | 101.00 | 101.70 | 102.40 | 103.00 |
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| Recommendation | Based on the charts and explanations above our opinion is selling crude around 101.75 and take profit at 100.60,98.50 and 96.70. Stop loss with daily closing above 103.35 might be appropriate. | ||||