Technical Oil (2010-01-07)

By @ibtimes on

Morning Report

Crude succeeded in breaching pivotal resistance mentioned yesterday at 82.00, nearing primary targets around 84.00 due to the effect of negative signs that are appearing through momentum indicators, where crude is bearishly correcting; therefore, we can expect it to retest the breached resistance and build a base where through it a bullish intraday direction is expected that initially targets 83.65 and then 84.50. The MA 50 supports the bullish short term direction that will prevail if 80.85 remain intact.

The trading range for today is among the key support at 80.85 and the key resistance at 85.00.

The general trend is to the upside as far as 47.20 remains intact with targets at 85.00.Support82.0081.2080.8579.7079.10Resistance83.1583.6584.5085.0085.80RecommendationBased on the charts and explanations above our opinion is buying oil with the breach of 82.00 targeting 83.65 and stop loss below 81.20, might be appropriate.

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