Technical Oil (2010-12-07)

By @ibtimes on

Morning Report

We await crude to move today according to the classical technical analysis, where the ascending channel is carrying trading flawlessly since the bottom $80.27; the minor (SMA) 20 and 50 are helping this channel gain more credibility. These channel are able to push crude towards 90.45 - 90.65 pointed out in our weekly report, according to the harmonic analysis. Chances of a bullish intraday direction will prevail, as long as trading remains above 88.20 throughout intraday trading; whereas the overall direction essentially requires a base to be built above 86.35.

The trading range for today is among the key support around 86.15 and the key resistance around 92.10.

The short term trend is expected sideways as long as trading is between 90.50 and 70.00 with weekly closings.

Previous Report

Weekly ReportSupport88.6088.2087.7587.2086.80Resistance89.7590.4591.3091.8592.10RecommendationBased on the charts and explanations above our opinion is buying crude around 88.60 targeting 90.45 and stop loss below 87.75, might be appropriate.

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