Weekly Report08 -12 / February / 2010

Attempts at breaching 81.70 are occurring, where this level is considered to be pivotal point for trading this week. The ascending channel, where main support is at 80.40, represents a major incentive for crude to continue ascending to attempts to retest 83.10, where more bullish movement towards the 61.8% extension at 84.00 is seen. Momentum indicators are pointing to some overbought signs which are not showing any signs of a bearish reversal on the daily chart. From here, we expect a bullish direction for this week that will maintain chances of trading stabilizing above 78.35 MA 20.

The trading range for today is among the key support at 77.10 and the key resistance at 88.20.

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

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MoreTechnical Analysis

Support81.0080.4079.0578.3577.10
Resistance82.6083.1583.5084.0084.95
RecommendationBased on the charts and explanations above our opinion is buying oil from 81.00 targeting 88.15 and stop loss below 79.20, might be appropriate.