Weekly Report 15 - 19 / March / 2010

Crude managed to achieve a breach of support for the ascending short term channel, with the daily closing below it and therefore making us expect a the bearish correction to continue and mainly target a new retest of $78.00 per barrel. From here, we expect a bearish short term direction for this week that will build a base on the mentioned target before resuming the main bullish trend. Keep in mind that this expected scenario require two conditions; first, a clear breach of 80.05 and the second is the daily closing remaining below 82.00.

The trading range for today is among the key support at 78.00 and the key resistance at 84.30.

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

Previous Report

Support80.0578.8578.0077.2576.45
Resistance81.2082.0082.6583.4584.00
RecommendationBased on the charts and explanations above our opinion is selling oil with the breach of 80.05 targeting 78.00 and stop loss above 81.20, might be appropriate.