Weekly Report(21-25 November 2011): Crude Oil Futures for January Settlement
Oil settled below 97.70 after breaching the level on Friday. The commodity breached the ascending trend line that carried price from the lows at 75.00 areas as well. Accordingly, we anticipate further decline this week however the main obstacle to the downside resides near 95.50 areas which is the 200 days SMA. Stochastic is within overbought areas thus we may see fluctuations to retest the breached ascending trend line before resuming bearishness. While stability back above 99.90 will invalidate bearishness and resume the bullish trend toward the highs again.
The trading range for the week is among the major support at 94.00 and the major resistance at 100.00.
The short-term trend is to the downside with steady weekly closing below 105.00 targeting 65.00.
*New York candlesticks*
Previous ReportSupport96.6095.6095.0094.5094.00Resistance97.5098.0099.0099.60100.35RecommendationBased on the charts and explanations above we recommend selling oil around 98.00 targeting 96.70 and 95.50. Stop loss with four-hour closing above 99.00