Crude Oil Weekly Technical Report 22-26/10/2012

 The price fell sharply with the contract expiration, where price has approached the support of the ascending channel shown on chart, while Stochastic enters oversold area, and thus providing another potential bullish resumption scenario. However, we prefer to remain on the side lines for the weekly report, to monitor price action around 89.00-89.50 support and 91.80-92.80 resistance.

The trading range for this week is expected among the major support at 88.00 and the major resistance at 96.00.

The short-trend trend is to the upside with steady weekly closing above 78.00, targeting 104.65 and 110.55.

 
Support    90.00    89.50    89.00    88.30    88.00
Resistance    91.00    91.80    92.35    92.80    93.80
Recommendation    Based on the charts and explanations above, we recommend staying aside awaiting confirmation.