Weekly Report(27-30 Dec 2011): Crude Oil Futures For February Settlement

Oil touched the top of the minor channel shown on the image, to reverse slightly this morning. The minor channel could be a bullish flag pattern suggesting the continuation of the bullish wave. However we still expect some downside potential before any upside continuation scenario affected by the descending resistance of the minor channel. In general, lower volume levels may continue to domintae the scene where we may witness sharp moves .

The trading range for the week may be among the major support at 94.00 and the major resistance at103.45.

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

Previous Report

Support99.3098.5095.0097.5096.75
Resistance100.15101.30101.90102.40103.30
RecommendationBased on the charts and explanations above our opinion is selling crude around 100.20 and take profit at 99.40 and 97.50 stop loss with daily closing above 100.50 might be appropriate.