Crude Oil (WTI) Technical Analysis 2011.11.02

Crude Oil set to continue the up-move

Previous analysis on WTI Crude Oil (2011.10.27) predicted a range evolution of price above the $90.00 support level and the closest resistance was established at $94.00 level.

The up trend from the early Octomber still looks strong as the confluence of supports (T1 trend line and 90.00 horizontal level) triggered a bounce towards the first resistance.  The next days are likely to bring new highs on Crude as long as the buyers can keep their bids in this range area.

The range from the 25th of octomber until now seems to be a continuation pattern in the prevailing trend and the possible evolution plotted on the chart sets the main target in the $99,90 area. As the price halted in the $94.00 area we expect this level to act as a support after an eventual break of it.

The first signal of a failure of this move (up) will be the clear break below the $90.00 support level. 

Crude Oil (WTI) Technical Analysis

Are the sellers in control already?

Crude Oil dropped on Friday after sellers kept their offer higher than the demand below the $90.23 main resistance.

Our first target on the short side was hit this morning as the price tested the lower border of the wedge (T1 line). Next, on the short term, we expect further decline as soon as the T1 trend line will break. The $86.50 area is clearly a key zone for the future price as it could hold as a support and, after the break of it, will stand as the main resistance.

There are two scenarios presented in the chart below (30 min. timeframe) that can fit the future market conditions. The $88.00 area is today’s resistance and a failure of breaking those levels will confirm the sellers’ strength. The main target in case of a down-break is set at $83.60 area.