Technical Oil (2011-01-14)

By @ibtimes on

Morning Report

Crude respected yesterday's suggested bearish move and stabilized below the ascending channel's support level as shown above. By taking a deeper look into the chart above, the bearish technical pattern is near complete with its suggested neckline around 90.80, while some fluctuation and minor correction is expected for yesterday's decline. We expect a bearish intraday direction that will initially starts with a clear breach of the mentioned neckline that will pave the way towards yesterday's key suggested targets around 88.20. Stochastic is negative supporting the suggested scenario which requires stability below 91.80.

The trading range for today is among the key support around 88.20 and the key resistance around 92.80.

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

Previous Report

Weekly ReportSupport90.8090.5089.8588.6088.20Resistance91.8092.1092.6093.1093.65RecommendationBased on the charts and explanations above our opinion is selling crude with the breach of 90.80 targeting 88.20 and stop loss above 91.80, might be appropriate.

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