Weekly Report (10-14 October 2011) : Crude Oil Futures for November Settlement

The commodity started the week higher and pushing to the upside after breaching the falling wedge formation -shown on image- approaching the 50 days SMA and 85.00 important resistance. Although the wedge formation suggests bullishness over the near term, there are some important technical barriers over the longer time horizon; mainly trading below the main descending resistance , therefore we prefer neutrality for now to monitor the price action around the sensitive levels and following our upcoming reports for updates.

The trading range for the week is among the major support at 77.00 and the major resistance at 87.50.The short-term trend is to the downside with steady daily closing below 100.00 targeting 65.00.

Previous Report

Support82.8581.5079.6078.5077.00
Resistance85.0087.0088.2089.6090.25
RecommendationBased on the charts and explanations above we recommend staying aside awaiting more confirmations.