Technical Oil (2012-03-02)

By @ibtimes on

Morning Report

Oil resumed the bullish action again, to rally sharply and prove that the recent breach of 107.60 to the downside was halted by the 20-EMA, thus, it goes back to settle above the 127.2% of CD leg for the harmonic pattern. By stabilizing above the aforementioned level we expect further incline and attempts to test the 161.8% around 116.45. Accordingly, we expect a bullish move however we may see sharp fluctuations as RSI is touching overbought areas.

The trading range for the day is among the major support at 106.45 and the major resistance at 112.15.

The short-term trend is to the upside with steady daily closing above 99.60, targeting 116.50.

**New York Candlesticks**

Previous Report

Weekly ReportSupport108.00107.60107.10106.45106.00Resistance108.85109.40109.80110.60111.30RecommendationBased on the charts and explanations above, we recommend buying crude above 108.00 targeting 110.60 and 112.15. Stop loss with four-hour closing below 107.10.

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