Weekly Report 11-15 / 1 / 2010

Crude continues pushing to the upside, according to our suggested scenario in our previous reports, where it is attempting to reach the main target for the resistance level's ascending channel at $88.40 per barrel. Meanwhile, momentum indicators are showing clear overbought signs that might cause some mixed trades, which could lean towards achieving some minor bearish correction to rid of these signs for the bullish technical pattern formation that are near completion. The overall bullish direction for this week requires the daily close to remain above 80.45.

The trading range for today is among the key support at 78.45 and the key resistance at 88.40.

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

RecommendationBased on the charts and explanations above our opinion is buying oil from 82.80 targeting 85.35 and stop loss below 81.20, might be appropriate.