Future Contracts for January Settlement

Oil is now trading below the bottom closing for 14-January-2007 week nearly at 50.25; oil might head a new trend if closing this week was also below the mentioned level. On the other side oil rebounded from 48.35 levels which is the closing and opening for the week 15-May-2005 and 22-May-2005 in addition to being a major resistance level for oil back in October 2004. Heavy selling saturation is seen over the medium and long terms and also over the short term which leads oil in a very volatile move which might reflect the soon to be seen upside correction, today we need to continue to monitor the short term downside wave which is connected to the resistance level at 54.60 yet again trading is at historical levels now and this week's closing might signal much for the coming period.  

The trading range for today is expected among the key resistance level at 56.95 and the key support level at 46.15.

The general trend is to the downside as long as 92.30 remains intact, targets now are at 58.60 and 53.05.