Technical Oil (2010-04-27)

The descending channel shown yesterday forced its dominance over crude's trading, where it halted the bullish intraday direction around 85.60. Chances of achieving more bearish correction, where it requires observing trading today for support levels 82.90 and resistance 85.25; whereas the breach of 82.90 will lead to more natural trading within the descending channel, alongside the bearish correction that is expected to reach 80.35 as 85.25 represents the return gate to resume the bullish direction once again.

The trading range for today is among the key support at 80.35 and the key resistance at 85.60.

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

Previous Report Weekly ReportSupport83.2582.9082.1081.4080.35Resistance84.3085.2585.9086.3587.05RecommendationBased on the charts and explanations above our opinion is to avoid trading awaiting more confirmation signs for the pair’s direction, might be appropriate.