Technical Oil (2010-03-22)

Oil failed to stabilize above the key resistance levels of 83.10 ,while RSI 14 and Stochastic indicators started to show bearish signs. Those signs appearing on the daily chart, might be able to activate a bearish pattern as we discussed inour weekly article on Friday- Check it here-. As far as the trading remains below 83.10 zones, the bearishness will be in favor while a break of 79.90 will confirm the negative scenario.

The trading range for this week is among the key support at 76.35 and key resistance now at 84.00.

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

Previous ReportSupport79.9079.0578.3577.9077.10Resistance81.2581.7582.6083.1083.50RecommendationBased on the charts and explanations above our opinion is, selling oil from 81.00, targeting 77.90 and stop loss above 83.10 might be appropriate for this week.