Weekly Report(09-13 Jan 2012): Crude Oil Futures for February Settlement

After topping at the major resistance level around 103.50, oil dropped again to retest the previously breached bullish technical pattern shown on chart, although the pattern suggests bullishness in the near term, the major resistance level may be the main barrier to the upside, in addition to that a bearish divergence over daily basis has materialized on Momentum Indicators thus threatening the current bullish wave. Therefore, we remain neutral this morning, awaiting price action at the current levels as steady trading within aforementioned pattern below the descending support near 101.00 may extend bearishness further.

The trading range for the week is among the major support at 98.00 and the major resistance at 106.05.

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

**GMT+2 Candlesticks**

Previous Report

Support101.00100.60100.0098.6598.20
Resistance101.70102.70103.35104.00104.60
RecommendationBased on the charts and explanations above we recommend staying aside awaiting more confirmation.