Weekly Report (06-10 June, 2011) for Crude Oil Futures for July Settlement Despite that oil touched the first extended target at 98.00 the 76.4% of CD leg , its still under the effect of the bearish Bat pattern due to stability below the 38.2% Fibonacci retracement of the CD leg of the pattern, where Stochastic is negative, therefore, we think that oil will attempt to move to the downside this week to make another attempt to stabilize below the rising support connecting the bottoms of point A and C , stability below this level will make it easier for oil to reach more extended targets for the pattern. Trading range for the week is among the major support at 93.15 and the major resistance at 107.30. The short term trend is to the downside with steady daily closing below 109.75, targeting 85.40. Previous Report
Based on the charts and explanations above our opinion is selling crude around 100.40 , and take profit in stages at 98.00,96.60 and 94.45. Stop loss with daily closing above 103.60 may be appropriate for this week.