Midday Report: Crude Oil Futures for February Settlement
Drilling into the four-hour chart, the commodity rebounded slightly this morning after testing the 101.00 support area, trading continues to fluctuate below the previously breached ascending support of the rising wedge formation shown above. We mentioned this morning some conflicting technical signals starting from the main bullish technical pattern that was breached lately, on the other hand a bearish divergence was seen on momentum indicators. Thus, and for further confirmation we anticipate steady trading below 101.00-100.80 to expect a bearish attempt today.
The trading range for the week is among the major support at 96.80 and the major resistance at 105.00.
The short-term trend is to the downside with steady daily closing below 105.00, targeting 65.00.
**GMT+2 Candlesticks**
| Support | 101.00 | 100.60 | 100.00 | 99.60 | 98.65 |
| Resistance | 101.70 | 102.70 | 103.35 | 104.00 | 104.60 |
| Recommendation | Based on the charts and explanations above our opinion is selling crude with four-hour closing below 100.80 targeting 99.60 and 98.50. Stop loss with hourly closing above 102.00 | ||||
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