Technical Oil (2011-03-29)

By @ibtimes on

Morning Report

Crude achieved the first awaited target for the harmonic technical pattern represented in 38.2% correctionof the CD leg around 103.20, where a bullish hammer candlestick was formed seen on the minor image above. This candlestick is able to push crude to retest levels around 104.30 and possibly extend upwards to reach 104.80; however, we expectthat theharmonic pattern to remain intact, where the crab pattern is still affecting it and thus stability in trading is below 106.55. Hence, we hold onto our overall negative expectations without failing to note the bullish correction that is forecasted for today; MACD proves that we have started to enter negative areas and thus the second target could be noted at 61.8% correction for the CD leg around $101.05.

The trading range for today is among the key support around 101.05 and the key resistance around 106.55.

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 ReportSupport103.20102.75102.20101.80101.05Resistance104.30104.80105.25105.85106.00RecommendationBased on the charts and explanations above our opinion is selling crude around 104.80 targeting 101.05 and stop loss with a four hour closing above 106.30, might be appropriate.

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