Crude Oil Weekly Technical Report 8-12/10/2012

Oil declined noticeably to settle below the pivotal support shown on red dashed line, oil is also approaching the 50% Fibonacci correction at 89.00, meanwhile the 50-EMA continues to form an intraday bearish pressure. In general, the bearish direction is likely this week , however it requires a clear break below 89.00 and the price to remain below 91.05.

The trading range for this week is expected among the major support at 85.00 and the major resistance at 91.05.

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

Support    90.50    89.80    89.00    88.00    87.65
Resistance    91.05    91.75    92.35    93.05    93.80
Recommendation    Based on the charts and explanations above, we recommend staying aside awaiting confirmation.