Weekly Report 21 - 24 / 12 / 2009

The short term descending channel was able to connect crude to support levels for the medium term bullish direction that met with 50% Fibonacci correction, which in its role showed resistance in front of the continuous bearish pressure that crude had achieved. Trades rebounded to the upside normally within the descending channel to target its resistance levels at 76.10, where we expect a clear breach for this level, supported by MA 100 to pave the way for targeting 73.10 and then 81.90. The negative signs that appearon Stochastic could force crude to witness some fluctuation and minor bearish correction before resuming the bullish direction. From here, we expect an overall bullish short term direction for this week, where its main targets are around 81.90 while keeping in mind that for the bullish direction to prevail it requires the daily close to remain above 72.25.

The trading range forthis weekis among the key support at 68.50 and the key resistance at 81.90.

The general trend is to the upside as far as 47.20 remains intact with targets at 85.00.

 
Support73.5072.2571.1570.1568.50
 
Resistance75.0076.1076.7578.0079.10
 
RecommendationBased on the charts and explanations above our opinion is buying oil from 73.50 targeting 76.10 and stop loss below 72.25, might be appropriate.
 

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