Weekly Report (20-24 June 2011)
Trading below 114.90 level which is the 50% retracement of the XA leg of the suggested harmonic pattern suggests more downside movement while forming the CD leg of a possible Bat pattern. ADX is indicating continuation of the downside move, while stochastic is not able to move to the upside. Therefore, we expect oil to move to the downside.The down side move is very possible if the pair stabilizes below the 50% retracement level , while breaking 112.90 may result in strong down move.
Trading range for the week is among the major support at 110.45 and the major resistance at 116.30.
The short term trend is to the downside as long as 132.50 holds, targeting 118.80.
|Recommendation||Based on the charts and explanations above our opinion is selling the pair around 114.35 targeting 112.10 and stop loss above 116.00 may be appropriate for the week.|