Weekly Report(23-27 March 2012): Crude Oil Futures forMarchSettlement

Midday Report: Crude Oil Futures for February Settlement

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Black gold is pushing to the upside since morning, attempting to test the resistance area we mentioned this morning, which managed to halt yesterday's rally. Stochastic continues to be lagging price action. In general, we hold onto our morning expectations.

The trading range for the day is expected among the major support at 98.00 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.

Morning Report

Weekly Report

Oil ended last week sharply lower pushing to 98.30 pivotal support. Where the commodity is currently attempting to settle below the 50-days SMA, and that could be another bearish signal, in addition to breaching the short term ascending support shown on image. These factors support bearishness within the coming week; however, steady trading below 98.00 is required to extend the downside action further, if 98.00 holds today we may see a bullish correction to retest the breached moving average in addition to the horizontal resistance among 99.50-100.00 before re-attempting to the downside again. Downside targets below 98.00 start at 96.75 followed by 95.00.
The trading range for the week is expected among the major support at 94.75 and the major resistance at 101.00.
The short-term trend is to the downside with steady daily closing below 105.00, targeting 65.00.

Previous Report

Support97.7596.8096.0095.0094.50
Resistance98.3099.30100.00100.90102.00
RecommendationBased on the charts and explanations above our opinion is selling crude around 99.50 and take profit at 98.30 and 96.75. Stop loss with four-hour closing above 100.00 might be appropriate.