Technical Oil (2010-02-23)

on February 23 2010 2:22 AM

Morning Report

Crude managed to achieve a gradual descend since yesterday within the minor descending channel, shown in the image above, which could form a bearish flag pattern; targeting by nature the breach its resistance to resume the bullish trend. We recommend observing crude within this minor channel, where the breach of its support (79.25) will lead it to directly descend towards the retest level 78.00, as normally trading within the main ascending channel. Meanwhile, the breach of this level will pave the way to continue the bullish direction, where its currently targets are around $82.00 per barrel.

The trading range for today is among the key support at 78.00 and the key resistance at 82.00.

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

Previous Report Weekly ReportSupport79.6079.2578.6078.0077.65Resistance80.3081.1082.0082.7083.20RecommendationBased on the charts and explanations above our opinion is buying oil with the breach of 80.30 targeting 82.00 and stop loss below 79.25, or selling oil with the breach of 79.25 targeting 78.00 and stop loss above 80.30, might be appropriate.

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