Technical Oil (2011-03-07)

By @ibtimes on

Weekly Report 7 - 11 / March / 2011

Since crude stabilized above 99.85, expectations of a bearish trend rebounding has changed due to the previous harmonic formation failing, while a new formation appeared. The pattern is moving within crude that could stabilize trading above 105.40 - 104.70. Note that this bearish formation could prevent the breach of 108.055 with a daily closing meaning the possibility of a bearish correction starting, but the breach of this level will cause the harmonic pattern to fail as crude continues to head upwards.

The trading range for this week is among the key support around 99.40 and the key resistance around 113.35.

The short term trend is expected towards the upside as long as the daily closing is above 98.00 with targets at 113.35.

Previous ReportSupport105.40104.70104.00103.70102.20Resistance106.85107.30108.00109.75110.20RecommendationBased on the charts and explanations above our opinion is buying crude above 105.40 targeting 108.00 and stop loss with a daily closing below 104.00, might be appropriate.

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