Technical Oil (2012-02-09)

By @ibtimes on

Morning Report: Crude Oil Futures for March Settlement

The price first attempt to breach the descending channel failed, however the 20 and 50 Exponential moving averages managed to halt further downside pressure and price settled above 97.70 support. We expect another bullish attempt today, as signs of a harmonic pattern has appeared on the chart which completes at 100.60, breaching this level may result in an extended rally. Steady trading above 97.70 is required for our expectations to remain valid.

The trading range for today is expected among the support at 94.80 and the resistance at 102.20.

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

*New York Candlesticks*

Previous Report Weekly Report

Support98.7098.1097.7097.0096.80Resistance99.60100.00100.60101.10101.80RecommendationBased on the charts and explanations above our opinion is buying crude around 99.00 and take profit at 100.60 and 101.10 stop loss with 4-hour closing below 97.70 might be appropriate.

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