Weekly Report (24-28 October 2011):Crude oil futures for December settlement
As seen on the daily chart above, oil has been moving within a range between 90.00-75.00 for the past couple of months, few days ago the commodity managed to breach the descending resistance that protected price action from the top near 115.00 in addition to breaching the 50 Days SMA, usually such breaches hint a potential reversal to the upside or a continuation of the ranging market, to decide if this breach will lead to an upside reversal surpassing the 90.00 mark is necessary. Anyhow, bullishness is in favor over intraday basis and over the week for a possible retest of the 90.00-91.00 major level.
The trading range for the week is among the major support at 84.00 and the major resistance at 95.00.
The short-term trend is to the downside with steady daily closing below 100.00 targeting 65.00.
*The provided chart based on GMT+3
|Recommendation||Based on the charts and explanations above we recommend buying oil around 87.45 targeting 88.80 and 90.20 . Stop loss with four-hour closing below 86.75|