Technical Oil (2010-02-10)

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Morning Report

Crude succeeded in achieving yesterday's expected bullish scenario, although the MA 50 is impeding achieving more ascends towards complete targets around 74.75. The MA, in addition to the bearish signs coming from momentum indicators, could negatively pressure crude. However, we expect an overall bullish intraday direction, where its targets start at 74.75 then 76.25. Signs of a bullish technical pattern have started to appear, supported by the expected bullish direction that requires trading to remain intact above 72.40 to maintain chances of it continuing.

The trading range for today is among the key support at 70.00 and the key resistance at 76.25.

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

Previous Report Weekly ReportSupport73.0072.4071.8071.2070.60Resistance73.7574.1574.7575.4076.25RecommendationBased on the charts and explanations above our opinion is buying oil with the breach of 74.15 targeting 75.40 and stop loss below 73.00, might be appropriate.

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