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Technical oil
Written by article default Tuesday, 31 January 2012 07:06
Morning Report : Crude Oil Futures for March Settlement
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The commodity is trading between the middle and the lower band for Bollinger bands indicator,but attempting to the upside. Stochastic is approaching overbought area however it's still positive and may help price stabilize above the middle band around 99.60. We expect some bullishness this morning for a possible retest of the aforementioned level and maybe further towards the main resistance for the descending channel colored in blue.
The trading range for the day is expected among the major support at 96.70 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.
*New york Candlesticks*
| Support | 99.80 | 98.50 | 98.00 | 97.50 | 96.70 |
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| Resistance | 99.60 | 100.00 | 100.60 | 101.10 | 101.80 |
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| Recommendation | Based on the charts and explanations above our opinion is buying crude above 99.00 targeting 100.00, 100.60 and 101.10 and stop loss below 98.40 might be appropriate. | ||||
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