Weekly Report 15 - 19 / February / 2010

After insuring the breach of support for the bullish direction where crude achieved a chain of daily closes below this level in an organized manner within the descending short term channel, where its resistance level is at 75.30. The rising wedges pattern appearing above, will additionally insure achieving more expected bearish movement for this week, which requires the breach of 72.55 to open a way to return once more below $70.00 per barrel. It is vital that the daily close remain below 75.30 to maintain chances of achieving these expectations.

The trading range for today is among the key support at 67.50 and the key resistance at 78.20.

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

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RecommendationBased on the charts and explanations above our opinion is selling oil from 74.50 targeting 72.55 and stop loss above 75.70, might be appropriate.