Weekly ReportMarch 29 - April 2/ 2010

Through the image above, we witness some stability in crude within the descending channel that represents the current bearish short term trend; supported by stability in trading below the MA 100 - its current value is at 80.80 -. The general trend will continue bearish, thus making us expect a bearish short term weekly basis due to effects from the current descending channel and mentioned MA. The main first target is at $78.00 per barrel followed by targeting 76.25 if crude breaches the first main breach. Keep in mind that these expectations will prevail if we do not witness a closing above 82.25.

The trading range for today is among the key support at 76.25 and the key resistance at 83.15.

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

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More Technical Analysis

Support79.9079.1078.0077.2576.25
Resistance80.8081.6082.2583.0583.50
RecommendationBased on the charts and explanations above our opinion is selling oil from 80.80 targeting 78.00 and stop loss above 82.25, might be appropriate.