Technical Oil (2011-02-11)

By @ibtimes on

Morning Report

Crude returned to the upside to currently trade in levels around 87.30 once again, while the bearish harmonic butterfly pattern is still intact and thereby making us expect more bearish movement over the short term (highlighted in our previous reports). Meanwhile, we will not rule out a bullish trend over an intraday basis before returning within the original direction since the chances of a bullish harmonic crab pattern is expected to form, supported by the stochastic. Hence, we expect the bullish correction to stabilize above 85.60 before heading later towards the overall bearish direction.

The trading range for today is among the key support around 84.30 and the key resistance around 90.50.

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 ReportSupport86.7586.1585.6085.0084.70Resistance87.3087.7588.2088.6089.05RecommendationBased on the charts and explanations above our opinion is stop yesterday’s recommendations and buy crude above 86.75 targeting 89.05 and stop loss below 85.60, might be appropriate.

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