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Technical oil
Written by article default Thursday, 02 February 2012 09:20
Morning Report: Crude Oil Futures for March Settlement
Oil declined once again, where the MA 50 halted our intraday positive expectations and failed the move after approaching the resistance around 99.60. Today, trading is stable below 97.60-70 and that supports expectations for further negative pressure. Stochastic is attempting to crossover positively in oversold areas and that might restrict the downside move for some time. Therefore, we remain neutral this morning awaiting confirmations for stability below 97.60 alongside the end of the positive sign on Stochastic.
The trading range for the day is expected among the major support at 94.90 and the major resistance at 100.00.
The short-term trend is to the downside with steady weekly closing below 105.00, targeting 65.00.
*New York Candlesticks*
| Support | 97.50 | 97.00 | 96.80 | 96.30 | 94.90 |
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| Resistance | 97.70 | 98.50 | 99.00 | 99.60 | 100.00 |
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| Recommendation | Based on the charts and explanations above we recommend staying aside awaiting more confirmations. | ||||
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