Members login
Technical oil
Written by article default Friday, 03 February 2012 12:12
Midday Report : Crude Oil Futures for March Settlement
|
|
The commodity rebounded this morning, as price declined to touch 96.18 level to reverse direction again, as demand was clear above 96.00 level. We think that the commodity is set to gain further for the rest of the session, as Stochastic confirmed the positivity and RSI is rebounding as well, while, +D line is attempting to cross above -D line on ADX, to confirm the reversal. We should take into consideration that the suggested incline remains temporal; unless it proves the opposite, as the price remains within the descending channel shown above.
The trading range for the day is expected among the major support at 94.80 and the major resistance at 99.60.
The short-term trend is to the downside with steady weekly closing below 105.00, targeting 65.00.
*New York Candlesticks*
| Support | 96.30 | 96.00 | 95.70 | 95.10 | 94.80 |
|
|
|||||
| Resistance | 97.10 | 97.70 | 98.50 | 99.00 | 99.60 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is buying crude around 96.00 and take profit at 97.60 and 98.50 stop loss with 4-hour closing below 95.10 might be appropriate. | ||||
|
||||||||||||