Technical Oil (2011-01-19)

By @ibtimes on

Morning Report

Over hourly basis, crude appears to have breached the descending correctional channel's resistance, which carried trading from the recently recorded top around 92.37. This signals that the correction settled for 38.2% Fibonacci, alongside trading above the MA 50 and 23.6% correction which is now a strong base. Therefore, weexpect a bullish intraday direction by building a base on 91.15 and moving towards the recorded top then towards 93.65. Keep in mind that breaching 91.15 paves the way towards retesting the breached descending correctional channel's resistance that has currently turned into support around 90.40.

The trading range for today is among the key support around 89.80 and the key resistance around 94.00.

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 ReportSupport91.1590.4089.8089.2088.60Resistance92.3593.1093.3594.0094.50RecommendationBased on the charts and explanations above our opinion is buying crude around 91.15 targeting 93.65 and stop loss below 90.40, might be appropriate.

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