Technical Oil (2011-05-24)

By @ibtimes on

Morning Report for Crude Oil Futures for July Settlement

Once again the 96.60 level holds with daily closing, and this adds confirmation to the bullish formation above the mentioned level at the 61.8% Fibonacci level of the complete IM wave. The general down trend is still intact; nevertheless, we believe that there is a possibility for some upside correction. Therefore, we expect more upside attempts and a breach of 99.85 will confirm the move.

The trading range for today is among the major support at 94.30 and the major resistance at 106.50.

The short term trend is to the downside with steady daily closing below 109.75 targeting 85.40.

Previous Report Weekly ReportSupport97.7096.6095.8095.0594.30Resistance98.8599.85100.40101.05101.80RecommendationBased on the charts and explanations above our opinion is buying crude around 98.00 and take profit in stages at 101.80 and 102.75 and stop loss with daily closing below 97.00 might be appropriate

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