Weekly 14 - 18 / March / 2011

According to the four hour interval, the bullish trend that has formed from 85.10 and in front of the impulsive wave (IM) that has formed around the top achieved at 106.92 followed by a bearish correction taking the form of another smaller impulsive wave. Meanwhile, the Elliot technical pattern is tied to the first part of the impulsive wave is the zig zag wave (ZZ), which has ended or near to ending the first A wave for it. Hence, some bullish correction is required to complete the B wave that could occur, then we could witness a bearish trend reappear once again to complete the C wave. In overall, the suggested downside trend could remain valid if 105.40 stabilizes within the four hour closing, while the bullish correction ends with a mere breach of 98.60 within the four hour closing.

The trading range for this week is among the key support around 93.50 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

Support98.6098.0097.2596.3095.80
Resistance100.40101.50102.20103.70104.00
RecommendationBased on the charts and explanations above our opinion is selling crude around 103.70 targeting 96.05 and stop loss with a daily closing above 105.40, might be appropriate.