Markets

Technical Oil (2011-09-20)

Morning Report: : Crude Oil Futures November Settlement As shown on the chart, oil dropped to breach the 86.50 ascending support of the wedge formation, the awaited breakout finally materialized. Currently, stochastic is clearly oversold, however, it crossed over positively within oversold area, therefore we might see a pullback to retest the breached support area, before resuming the downside move over intraday basis. Trading back above 88.00 shall threaten the reliability of the breakout. The trading range for the day is among the major support at 80.00 and the major resistance at 88.50. The short-term trend is to the downside with steady daily closing below 100.00 targeting 65.00. Previous Report Weekly Report

Support 85.20 84.50 83.50 83.00 82.00
Resistance 86.20 86.50 87.00 87.50 88.00
Recommendation Based on the charts and explanations above we recommend selling oil around 87.00 targeting 85.10 and 83.00. Stop loss with four hour-closing above 88.00

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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