Technical Oil (2010-01-27)

Crude gradually completed forming the bullish technical pattern after its second attempt to touch main support mentioned yesterday around 73.70 (recording its lowest at 73.80 till now). We still see that the expected direction is bullish over an intraday basis; where the first of its targets is at 75.45 as we expect it to be breached to pave the way to head towards the coming technical target at 76.50. However, we should pay attention that expectations will remain intact if we do not witness a clear breach of 73.40.

The trading range for today is among the key support at 72.65 and the key resistance at 76.50.

The general trend is to the upside as far as 47.20 remains intact with targets at 85.00.Support73.8073.4072.6572.3071.60Resistance74.9075.4576.6077.1077.65RecommendationBased on the charts and explanations above our opinion is buying oil from 73.80 targeting 75.45 and stop loss below 72.65, might be appropriate.