Weekly 12 - 16/ April / 2010

Crude was able to reach resistance for the ascending short term direction that started its bearish reversal, and has stabilized within the minor descending channel's lane shown above. The bearish technical signs appearing on the four hour chart encourages us to expect a bearish overall direction for this week; starting with the breach of 84.35 to target $82.00 per barrel. Keep in mind that the breach of 86.05 will make the suggested scenario fail and push upwards below the need to bearishly correct.

The trading range for today is among the key support at 82.00 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.

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RecommendationBased on the charts and explanations above our opinion is selling oil with the breakout above 84.35 targeting 82.00 and stop loss above 86.05, might be appropriate.