Technical Oil (2011-02-14)

By @ibtimes on

Weekly Report 14 - 18 / February / 2011

Crude sharply declined nearing the suggested target's levels mentioned in our previous reports, although the bullish correction expected to be breached last Friday around 85.60 failed. The bearish trend is tied to the bearish technical pattern that has been pointed our due to its effect on the pair, but presently since trading is stable below 87.30 it is highly expected to breach 84.30, representing the first target for the butterfly patter within the 38.2% correction level for the CD pattern. Hence, the breach of this correction could cause more bearish movement within this week's trading.

The trading range for this week is among the key support around 81.65 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 ReportSupport85.0084.7084.3083.6582.75Resistance86.7087.3087.7588.2088.60RecommendationBased on the charts and explanations above our opinion is selling crude around 87.30 targeting 84.30 and stop loss with a daily closing above 88.60, might be appropriate.

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