Technical Oil (2011-02-17)

By @ibtimes on

Morning Report

The image above highlights how crude is reacting with the first target for the bearish butterfly pattern, where the key image is showing major oversold signs on momentum indicators that will prevent the current bearish wave from expanding. The expected correction after resuming targets in our harmonic technical analysis, although breaching the first target will help the bearish wave to continue to reach the second target represented in 61.8% correction within stages. We still require insuring a rebound from the first awaited target around 84.30 ascending to the correction and stabilizing below it, in order for the negative effect on the butterfly pattern to continue. We remain neutral today as we await for signs that insure the upcoming direction.

The trading range for today is among the key support around 81.75 and the key resistance around 87.30.

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

Previous Report

Weekly ReportSupport84.7084.3083.6583.3582.75Resistance85.6086.1586.7587.3087.75RecommendationBased on the charts and explanation above our opinion is remaining neutral today until we receive signs that insure its upcoming direction.

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