Weekly Report 26 - 30 / April / 2010
Crude halted at 23.6% Fibonacci correction from the main bullish wave shown in the image above, where it returned within the previously breached ascending channel due to help from the bullish technical pattern that has been previously formedon pastFriday. The negativity of the momentum indicators in addition to resistance for the minor descending channel, which has organized the bearish correction, could cause some fluctuation but in overall we expect a bullish trend for this week; starting with the breach of 85.45 to target $88.00 per barrel initially. It is vital that the daily closing remains above 83.25 to achieve this scenario.
The trading range for today is among the key support at 82.70 and the key resistance at 90.30.
The short term trend is expected to the upside as far as 65.60 remains intact with targets at 88.00.
Previous ReportSupport84.9084.1583.2582.7082.10Resistance85.4585.9086.3587.0587.50RecommendationBased on the charts and explanations above our opinion is buying oil from 84.90 targeting 87.05 and stop loss below 83.25, might be appropriate.