Technical Oil (2011-02-02)

By @ibtimes on

Morning Report

Crude declined noticeably once again from 82.60 areas, which confirms the valid effect of the harmonic butterfly pattern; the upside move seen was not capable of breaching the reversal zone. Stochastic is attempting to crossover negatively supporting the return to the bearishness, breaching 90.00 areas and stability below it is further confirmation for the downside move which requires stability with daily closing below the reversal areas mentioned.

The trading range for today is among the major support at 86.75 and the major resistance at 93.95.

The short term trend is to the upside with steady daily closing above 84.00 targeting 99.00.

Previous Report

Weekly ReportSupport90.0089.8589.0588.6088.20Resistance91.3591.8592.1092.6092.80RecommendationBased on the charts and explanations above our opinion is selling oil around 91.35 targeting 87.30 and stop loss with daily closing above 82.60 might be appropriate

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