Weekly Report 05 - 09 / April / 2010

Crude continued pushing upwards within the minor ascending channel shown above. Momentum indicators are showing negative signs that point to some possible bearish correction, where we expect it to build a base on 84.35 - support for the minor ascending channel that meets with 23.6% Fibonacci - followed by a bullish rebound that the pair will resume through it the overall expected bullish direction for this week; targeting mainly $88.00 per barrel. The breach of 83.45 could lead to postponed awaited targets and lead towards bearish correction that touches 81.85.

The trading range for today is among the key support at 82.70 and the key resistance at 88.00.

The short term trend is expected to the upside as far as 65.60 remains intact with targets at 88.00.

RecommendationBased on the charts and explanations above our opinion is buying oil with from 84.35 targeting 85.85 and stop loss below 83.45, might be appropriate.