Technical Oil (2010-01-14)

Crude succeeded in achieving the awaited primary target for yesterday at 78.70 - 38.2% Fibonacci correction - quickly rebounding to the upside to halt trades between 38.2% and 23.6% Fibonacci, as shown through the image above. We expect trades to lean to the upside today and this requires the breach of 80.70 to insure the end of the bearish correction through achieving yesterday's target. It is vital to pay attention to the breach of 78.70 to open the way for more bearish correction that targets $77.00 per barrel, if it is achieved.

The trading range for today is among the key support at 77.80 and the key resistance at 82.20.

The general trend is to the upside as far as 47.20 remains intact with targets at 85.00.Support79.9079.4578.7078.2077.70Resistance80.7081.3582.2082.7083.20RecommendationBased on the charts and explanations above our opinion is buying oil with the breach of 80.70 targeting 82.20 and stop loss below 80.00, might be appropriate.