Technical Oil (2010-05-13)

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Morning Report

Crude managed to reach halfway towards the awaited target at 74.50, where we notice that the bearish wave is currently within the descending channel shown above. We can expect some minor bullish correction that may build a base on 75.60 before continuing the expected bearish intraday direction; targeting initially 74.50 - 74.20. It is vital that the daily close below 76.25 to insure achieving these scenario.

The trading range for today is among the key support at 73.65 and the key resistance at 77.20.

The short term trend is expected to the upside as far as 65.60 remains intact with targets at 90.00.

Previous Report Weekly ReportSupport75.1574.5073.6572.7572.40Resistance75.6076.2577.2078.3578.65RecommendationBased on the charts and explanations above our opinion is selling oil from 75.60 targeting 74.50 and stop loss above 76.20, might be appropriate.

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