NYMEX LIGHT SWEET CRUDE FUTURES 03-Jan-2006, February Futures @ $61.45.... 1416 IST or 0846 GMT or 0346 EST
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| | Long Term Trend (Multi Month) | Medium Term Trend (Multi Week) | Current Overall Trend
| Bullish to $70.00. (Confirmation above $62.50. )
| Ranged between $56.00 and $62.50.
| Caution at
| Fall below $57.00.
| Fall below $58.00 leads to $56.00. Or a rally above $61 leads to a test of $62.50.
| Overall trend changes at
| Fall below $54.50.
| Fall below $56.00. Or a break above $62.50
| Target if overall trend changes
| $50.00.
| In case of a move above $62.5 the target would be $67 and in case $56 breaks, the target would be $50
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This Week:
| Immediate Resistance
| $62.50.
| Immediate support
| $60.50
| Trend for the week
| Look for $64.00 if $62.50 breaks.Else dip back to $58.00
| Range for the week
| $64.00-$60.00
| Targets for the week
| Undecided.
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Commentary:
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Short-Term:
The Crude oil closed strong on Friday at $61.04, which could now lead to a test of a crucial resistance at $62.50. We expected the week to start with a minor dip, but seems like there could be some more rise possible.
A break above $62.50 may see a rise to $64.00. Failure to rise above $62.50, might lead to a fall below immediate support at $60.50 and may even dip to $58.00. For today we prefer to wait and watch for a while.
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Short Term Trades:
None.
Holding 3 Lot in cash.
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Long-Term:
The crude oil failed to decline below the $58.00 on 27-Dec-05 level. Earlier it had also failed to rally above $62.00 on 13-Dec-05. This clearly indicates a trading range. Now it has to rise above $62.00, to give a clear-cut medium term Buy signal. A break below $56.00 could result in a fall towards $50.00.
We expect an eventual bullish break of the range as it has critical long term supports near the lower end of the range around $56.00-$55.00.
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Long-Term Trades:
Holding:
3 Lots Cash.
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Order:
Order:
Buy 1 lot at $62.60, SL $60.00, TP Open.
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