Weekly Report(16-20 Jan 2012): Crude Oil Futures for February Settlement
Oil started the week lower; the commodity is testing the important support level at 98.30-98.50, and the short term ascending trend-line shown on image. The recent bearishness grabbed the price to trade again below the descending support shown on image and this is a bearish signal per se, in addition to the persistent bearish divergence on Momentum indicators. Accordingly we expect further bearishness this week and steady trading below 98.30 shall confirm it.
The trading range for the week is expected among the major support at 96.00 and the major resistance at 102.40.
The short-term trend is to the downside with steady daily closing below 105.00, targeting 65.00.
|Recommendation||Based on the charts and explanations above our opinion is selling crude around 100.20 and take profit at 99.20 ,98.30 and 95.50 stop loss with four-hour closing above 101.50 might be appropriate.|