Technical Oil (2011-03-28)

By @ibtimes on

Weekly Report March 28 - April 01 / 2011

Crude has been lightly trading-May contract-due to the affect of the harmonic crab pattern, where today crude attempts to breach the key upside trend's support level that is trading within the CD leg pattern. Hence, we expect more bearish movement this week, targeting downside movement for 38.2% correction for the CD leg by breaching the last level, where a retest of 61.8% correction for the same patter could be witnessed. Note that these expectations require stability below 106.55 with a four hour closing.

The trading range for this week is among the key support around 97.25 and the key resistance around 109.65.

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 ReportSupport104.75104.30103.70103.20102.75Resistance106.00106.55106.85107.30108.00RecommendationBased on the charts and explanations above our opinion is selling crude around 105.30 targeting 101.05 and stop loss with a four hour closing above 106.50, might be appropriate.

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