Technical Oil (2011-01-10)

By @ibtimes on

Weekly Report 10-14 / January / 2011

According to the four hour chart, crude appears seems to have opened trading today with a price gap to the upside breaching the falling wedge's resistance level in the image; however, in return crude found strong resistance around 89.85 due to 50% Fibonacci correction and MA 50. The breach that occurred points to the strength of chances of crude returning to resume the bullish short term direction towards the key target, which is represented in the ascending channel's resistance level at 95.00. Meanwhile, the price gap is expected to cause crude to return to cover it, alongside the strength of the mentioned resistance level are all technical factors that could force crude to resume the bearish scenario, appearing in our reports last Friday. We recommend observing crude's trading today, specifically around critical levels represented in support 88.80 and resistance 89.85 that hold the keys to insure the expected weekly direction.

The trading range for this week is among the key support around 85.25 and the key resistance around 92.50.

The short term trend is expected towards the upside as long as trading is above 84.00 with targets at 99.00.

Previous ReportSupport88.8088.3587.7087.2586.80Resistance89.1089.8590.2590.8091.35RecommendationBased on the charts and explanation above our opinion is observing the pair’s movement to insure its upcoming direction.

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