Weekly Report1- 5/ March / 2010

Crude has started a bullish short term wave after building a base on support for the ascending channel shown above in the daily drawing, while supported by the MA 100. Momentum indicators are showing negative signs that add strength to the horizontal resistance 90.35, representing the neckline for the continuous bullish pattern; we expect it to be breached to pave the way to achieve an expected bullish short term direction for this week. The technical targets are around $85.00 per barrel, whiling paying attention that these expectations require the daily close to remain above 78.30 to insure achieving it.

The trading range for today is among the key support at 76.70 and the key resistance at 85.00.

The general trend is to the upside as far as 65.60 remains intact with targets at 85.00.

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RecommendationBased on the charts and explanations above our opinion is buying oil with the breach of 80.35 targeting 82.35 and stop loss below 79.25, might be appropriate.