Technical Oil (2010-02-09)

Crude succeeded in achieving the mentioned targets in yesterday's reports, touching support for the descending channel, shown in the image above, where it rebounded to the upside to start a bullish correction that is considered to be normal trading within the mentioned channel. Pivotal resistance is currently halted at 72.40, as the only barrier that is facing the expected bullish correction actiontoday, which is expected to reach its maximum level at 74.75 - expected bullish correction scenario.

The trading range for today is among the key support at 69.25 and the key resistance at 74.75.

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

Previous Report Weekly ReportSupport71.2070.6070.3069.5069.25Resistance72.4073.3573.7574.7575.40RecommendationBased on the charts and explanations above our opinion is buying oil with the breach of 72.40 targeting 73.75 and stop loss below 71.20, might be appropriate.