Technical Oil (2009-12-30)

Crude continued its gradual ascend, while trades remain within a range narrowing gradually through symmetrical triangle pattern, shown in the image above. The limits of this triangle are represented in support 78.20 and resistance 79.30; where this pattern most likely will resume the bullish direction after achieving its resistance level. From here, we expect a bullish direction for today that will start breaching 79.30 and initially target $80.00 per barrel, following 81.00; knowing in fact that chances of this ascend will prevail if 78.20 remain intact.

The trading range for today is among the key support at 76.60 and the key resistance at 82.00.

The general trend is to the upside as far as 47.20 remains intact with targets at 85.00.Support78.2077.3076.6075.6075.20Resistance79.3080.4580.8082.0082.50RecommendationBased on the charts and explanations above our opinion is buying oil with the breach of 79.30 targeting 80.80 and stop loss below 79.20, might be appropriate.