Technical Oil (2011-07-20)

By @ibtimes on

Morning Report

intraday correction yesterday was minor and limited to 96.85 area very near from our awaited entry level, from there the commodity rallied to achieve our first target at 98.00 to reach the highest near 99.00 area. we can clearly see that price has some troubles surpassing 98.70 area, where the momentum indicators are clearly showing that, therefore we may see a deeper correction toward 97.70 area before the resumption of the upside move toward the highs near 99.50 and the initial target of the previously mentioned 5-0 pattern at 101.00. we have to mention that breaching 97.70 with four-hour closing may negate our scenario and extend the move within the recent range toward 96.70 and 95.00. Trading range for the day is among the major support at 94.00 and the major resistance at 101.00.The short term trend is to the downside with steady daily closing below 105.00, targeting 87.00.

Previous Report

Weekly ReportSupport98.0097.6596.2095.7095.00Resistance98.7099.50100.40100.90101.80RecommendationBased on the charts and explanation above we recommend buying oil around 97.70 targeting 99.30 and 101.00 , stop loss with four-hour closing below 97.50 may be appropriate

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