Technical Oil (2010-01-20)

on January 20 2010 2:24 AM

Morning Report

Crude managed to appear to have breached pivotal resistance 78.65 due to effect from the bullish technical pattern that pushed crude towards 78.45, affected by negative signs appearing through the stochastic, which are pressuring crude to return below pivotal resistance, shown in the side image. From here, we hold onto our previous expectations and expect a bearish intraday direction; initially targeting $77.00 per barrel, which requires trades below 79.65. The sign shows that we have started new contracts for crude know as March contracts -2010.

The trading range for today is among the key support at 76.00 and the key resistance at 80.50.

The general trend is to the upside as far as 47.20 remains intact with targets at 85.00.Support77.8077.0076.6076.0075.60Resistance78.6579.6580.5081.3582.25RecommendationBased on the charts and explanations above our opinion is selling oil from 78.65 targeting 77.00 and stop loss above 79.60, might be appropriate.

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