Crude Sept 14th

Crude oil's consolidation from 98.29 continued last week and outlook remains bullish. Crude Oil prices advanced 1.43% and ended, closing at 98.20; on speculation demand for oil might rise from its largest consumer the US, after the Federal Reserve took steps to boost the economy.

In the Asian session, Crude Oil in the morning was trading at 98.94, 0.75% higher from yesterday’s close. Crude oil is expected to find support at 97.25, and a fall through could take it back to the next support level of 95.56. However it is expected to find its first resistance at 99.88, and a rise through could take it to the next resistance level of 100.83 thereafter targeting $105.

With 92.94 supports intact, further rally is still expected. Above 98.29 will extend the rise from 77.28 to 100 psychological level and above. However, as noted before, such rise could be the fourth leg inside the triangle pattern from 114.83. Hence, remain cautious on topping between 100 and 110. Meanwhile, break of 92.94 will be the first signal of reversal and turn focus to 86.92 level support for confirmation.

Looking at the chart, it appears that we are going to rise above the $100 mark. $100 should give way relatively quickly, and as such I feel that the $105 level is probably where it is heading next. As for selling, I simply would not advice.

For intra-day Crude oil is expected to find support at 97.25, and a fall through could take it to the next support level of 95.57 and it is expected to find its first resistance at 99.88, and a rise through could take it to the next resistance level of 100.83.