Weekly Report 8 - 12 / February / 2010
Crude managed to achieve a strong breach of pivotal support 72.40 to open a way to achieve more bearish short term direction. Some positive signs are appearing through momentum indicators and might push crude to attempt some minor bullish correction; whereas the breached support that will meet with the MA 200 days, which will make us expect a overall bearish direction for this week; targeting 69.25 then $67.00 per barrel. Keep in mind that the breach of 72.40 could postpone achieving the expected descend; at a time trading will remain below 75.40 and maintain the bearish medium term direction.
The trading range for today is among the key support at 67.00 and the key resistance at 75.85.
The general trend is to the upside as far as 47.20 remains intact with targets at 85.00.
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|Recommendation||Based on the charts and explanations above our opinion is selling oil from 72.40 targeting 69.25 and stop loss above 73.75, might be appropriate.|