Weekly Report(13-17 Feb 2012): Crude Oil Futures for March Settlement

We will readjust the main descending trend-line to cover all price movement from 103.73 top. Accordingly, price remains within the descending channel and below its main resistance around 100.00 dollar/barrel. Stochastic is within overbought areas, while the suggested harmonic pattern may be completed earlier at levels below 100.60 affected by the descending channel. Therefore, as long as trading remain below 100.60 the short term outlook shall remain bearish; where price may attempt again to settle below 97.60. Trading below the aforementioned level is necessary to confirm the continuation of the downside move.

The trading range for this week is expected among the support at 94.80 and the resistance at 103.35.

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

*New York Candlesticks*

Previous Report

Support99.0098.5097.6096.3095.70
Resistance99.60100.00100.60102.00102.80
RecommendationBased on the charts and explanations above our opinion is selling crude below 99.60 targeting 97.60,96.80 and 95.10. Stop loss four-hour closing above 100.60 might be appropriate.