Weekly Report (13-17 June, 2011) for Crude Oil Futures for July Settlement
It's very possible that the sideways pattern that has formed since from May 6,is a contracting triangle that formed the B wave of a Zigzag pattern as shown in the image. This scenario suggests that we may see a downside movement during this week, and this move will be confirmed by breaching 96.60 and stabilizing below it. While steady closing below 102.25-102.75 keeps this downside move possible. Momentum indicators are showing a downside bias supporting the suggested scenario.
The trading range for today is among the major support at 93.15 and the major resistance at 104.30.
The short term trend is to the downside with steady daily closing below 109.75 targeting 85.40.
|Recommendation||Based on the charts and explanations above our opinion is selling crude around 99.40, and take profit in stages at 98.00, 96.60 and 94.45. Stop loss with daily closing above 101.80 may be appropriate for the week|