Technical Oil (2011-03-10)

on March 10 2011 2:45 AM

Morning Report

Crude has been attempting to stabilize above 105.40 for two consecutive days to no avail, where this level represents 127% correction for the CD leg pattern from the harmonic formation. Meanwhile, the connection of the leg correction patterns make us expect that the highlighted level is not possible due to the harmonic pattern's completion, since the formation is close to forming a crab pattern that is near completion around the D3 point level around 108.00 initially. Hence, we hold onto positive expectations that point to chances of a bullish trend that will prevail as it stabilized above 105.40 with a four hour closing.

The trading range for today is among the key support around 100.40 and the key resistance around 108.00.

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 Report

Weekly ReportSupport104.00103.70102.75102.20101.80Resistance105.40106.85107.30108.00109.75RecommendationBased on the charts and explanations above our opinion is buying crude around 104.00 targeting 108.00 and stop loss with a four hour closing below 102.70, might be appropriate.

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