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Technical oil
Written by article default Friday, 27 January 2012 08:30
Morning Report: Crude Oil Futures for March Settlement
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Oil pared the gains yesterday after touching the descending resistance for a possible bullish technical pattern shown on the chart. The latest breach of the main ascending support has an effective downside pressure on the commodity. In general, trading settles above the 50-days average again, and near the top of the aforementioned technical pattern; therefore, we need further confirmation for the next move today as technical contradiction is seen.
The trading range for the day is expected among the major support at 97.00 and the major resistance at 102.50.
The short-term trend is to the downside with steady daily closing below 105.00, targeting 65.00.
*GMT+2 Candlesticks*
| Support | 99.00 | 98.00 | 97.50 | 97.00 | 96.50 |
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| Resistance | 100.00 | 100.90 | 101.50 | 102.20 | 103.00 |
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| Recommendation | Based on the charts and explanations above we recommend staying aside awaiting more confirmation. | ||||
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