Technical Oil (2011-02-24)

By @ibtimes on

Morning Report

The sharp rebound caused yesterday's intraday expectations to fail closing above 98.40 - 98.60, but we currently await for the harmonic formation in the chart above as we find ourselves in front of the bearish butterfly pattern, where 161.8% CD leg pattern corrected in it from the XA leg around $99.85 - 100.00. Henceforth, this means that there are chances of a bearish reversal although we still require insuring it through the daily closing below 98.10 - 98.00. Momentum indicators prove the suggested harmonic pattern, although we remain neutral today until stability of 99.85 is assured or breached.

The trading range for today is among the key support around 93.05 and the key resistance around 104.65.

The short term trend is expected towards the upside as long as the daily closing is above 84.00 with targets at 104.65.

Previous Report

Weekly ReportSupport98.0097.2596.3095.7094.80Resistance99.2099.85100.25101.80102.35RecommendationBased on the charts and explanation above our opinion is remaining neutral until signs appear to insure its upcoming direction.

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