Weekly Report(03-07 October 2011): Crude Oil Futures for November Settlement
The commodity printed a clear weekly closing below the medium term ascending trend line, while trading is uniform within the main descending channel shown on image. Accordingly, we expect bearishness to remain dominant this week as well, targeting mainly 75.00 and 70.00 areas. The downside bias should remain intact so long as oil is trading within the channel and below the 50 day SMA (Colored in green).
The trading range for the week is among the major support at 71.00 and the major resistance at 85.00The short-term trend is to the downside with steady daily closing below 100.00 targeting 65.00.
|Recommendation||Based on the charts and explanations above we recommend selling oil around 79.60 targeting 78.20 and 75.75. Stop loss with four-hour closing above 80.30|