Finotec News Archive - February 26 2010
Crude oil could ascend although correction is inevitable
Crude oil was poised for the biggest monthly advance since October, amid speculation the Organization of Petroleum Exporting Countries won’t increase output quota and as the dollar extended losses.
Anthony Boyajian 
26 February 2010
Print this article
Subscribe to RSS
Crude oil was poised for the biggest monthly advance since October, amid speculation the Organization of Petroleum Exporting Countries won’t increase output quota and as the dollar extended losses. Oil was little changed in New York as traders bought back previously sold contracts after yesterday’s decline; betting prices may be sustainable around $80 a barrel. OPEC, which meets to discuss policy in March, is set to raise supplies to a 14- month high this month.
Trading Tactics
A clear downtrend could be an opportunity to Sell Crude Oil
The buying point is at 80.20; previous resistance is the take profit at 82.40; Fibonacci 23.6% is the stop loss at 78.80
The selling point is at 78.11; Fibonacci 61.8% is the take profit at 75.70; Pivot point is the stop loss at 79.85
Technical: crude oil fails to breaks the previous resistance and forms a failure swing pattern with a break of standard error channel lower line. A move back lower could set up a test of 75.70
To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice a lower histogram MACD; RSI (Relative Strength Index) is in a downtrend; momentum is in a bearish direction and stochastic crosses %D line downwards.
*Analysis is for information purposes only and does not constitute advice in any form. Past performance is not an indicator of future performance. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment.
By Finotec’s professional analyst,
dealingdesk@finotec.com
Crude Oil (Daily Chart)
Finotec Analysis Team
26 February 2010
The market review and analysis content on this site, including news, quotes, data and other information, is provided for your personal information only, and is not intended as a recommendation for trading purposes. Content on this site does not provide any form of advice (investment, tax, legal) amounting to investment advice, or make any recommendations regarding particular financial instruments, investments or products. Finotec does not provide investment advice or recommendations to buy or sell securities.
