Technical Oil (2011-10-26)

By @ibtimes on

Morning Report:Crude oil futures for December settlement

The commodity found resistance at the top of the channel and the 127.2% Fibonacci extension in addition to medium term descending trend line -colored in red-. The 94.50-95.00 area should form a good ceiling for price in the near term, while a breach above the level will signal bullishness toward 100.00 mark. On the other hand downside pullback should be limited to 89.60 areas, a breach below that level shall threaten bullishness significantly.

The trading range for the day is among the major support at 89.60 and the major resistance at 96.00.

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

Previous Report

Weekly ReportSupport92.7092.0091.1090.6089.60Resistance94.5095.0095.6096.2097.00RecommendationBased on the charts and explanations above we recommend buying oil around 91.85 targeting 93.00 and 94.50. Stop loss with four-hour closing below 91.00

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