Weekly Report(12-16 Dec 2011): Crude Oil Futures for January Settlement
After testing areas just above 97.00 the commodity rebounded again, to retest the previously breached support which turns into resistance at 99.60.The overall range-trading stance remains dominant where the upper limit of the range bound around 103.00 and 95.00 is the downside ground for range. In general, we continue to expect the range to hold within the coming few days or week, however any breach either side will signal either a reversal to the downside initially towards 93.00 or a continuation towards 106.00 level. Currently trading settled below the 38.2% Fibonacci correctional level of the latest bullish wave however 61.8% level managed to halt further declines, accordingly, if 99.65 was taken a bullish move will be anticipated today.
The trading range for the week may be among the major support at 94.50 and the major resistance at 104.00
The short-term trend is to the downside with steady weekly closing below 105.00 targeting 65.00.
|Recommendation||Based on the charts and explanations above we recommend buying oil with four-hour closing above 99.70 targeting 100.70 and 101.80, stop loss with four-hour closing below 99.00|