Weekly Report(19-23 Dec 2011): Crude Oil Futures For January Settlement

Last week the commodity managed to settle below the main support and neckline for the bearish technical pattern shown above around 95.00, in addition to the 200-days SMA, that suggested an immediate sell-off and indeed the commodity dropped to trade as low as 92.50. Looking back into the daily chart, 90.00 mark has been always a major directional barrier for the commodity, we think that a test of this support area is within reach this week, however it should limit further decline for the rest of the week.

The trading range for the week may be among the major support at 90.00 and the major resistance at 96.00.

The short-term trend is to the downside with steady daily closing below 105.00, targeting 65.00.

Previous Report

Support92.5092.0091.3090.6090.00
Resistance93.3094.7594.2095.0096.00
RecommendationBased on the charts and explanations above we recommend selling oil around 94.00 targeting 92.75 and 90.60 stop loss four-hour closing above 95.10