Technical Oil (2011-03-02)

By @ibtimes on

Morning Report

Level of 99.85 failed in stopping any positive trading to occur with a daily closing presently appearing and could form a new harmonic formation; this formation is expected to be a flawless bat pattern that could complete its formation around 102.40 initially. However, it could also be an imperfect butterfly pattern - although close to perfection - and be complete around 104.70 - 105.35, unless it is flawless crab pattern. We shall examine each pattern in order starting with the first and until it proves a extended CD leg pattern further, making this the first step to a bat pattern. According the image above, we expect a bullish harmonic trend taking us to level D1 highlighted in the beginning of the picture. Momentum indicators could cause major fluctuation due to the overbought signs appearing.

The trading range for today is among the key support around 95.70 and the key resistance around 105.35.

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 ReportSupport99.8599.4098.6098.0097.25Resistance100.75101.80102.40103.35103.80RecommendationBased on the charts and explanations above our opinion is buying crude above 100.00 targeting 104.65 and stop loss with a four hour closing below 98.00, might be appropriate.

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