Technical Oil (2011-03-11)

By @ibtimes on

Morning Report

The bearish harmonic crab pattern has completed formation around 106.93 instead of touching 108.00, which resumes forming a harmonic pattern despite of it not precisely touching 161.8% correction flawlessly. Nonetheless, since the pattern has completed forming a bearish trend is noted, where the first target was achieved through it as crude inches closer to the second target around 102.90 and 100.40, according to the image above. In return, the negativity is still evident and thus calling for chances of touching the extended targets for the harmonic pattern that starts around 76.4% correction for the CD leg around 98.90, the 88.6% correction around 97.55. Note that trading below the MA's will help the expected bearish trend gain more assurance.

The trading range for today is among the key support around 96.30 and the key resistance around 106.85.

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 ReportSupport100.95100.4099.8599.4098.90Resistance102.20102.75103.70104.00104.65RecommendationBased on the charts and explanations above our opinion is selling crude around 102.90 targeting 98.90 and stop loss with a four hour closing above 104.65, might be appropriate.

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