Weekly Report 17 - 21 / May / 2010

Crude maintained its stability below previous breached pivotal support levels, where through the image above we witness that building a base below MA 200 will additionally insure the bearish short term direction. Momentum indicators are showing oversold signs that could cause some fluctuation and lean towards some minor bullish correction, before resuming the bearish trend for overall trading this week. The awaited targets initially start at $67.60 then 66.00 per barrel and require closing to remain below 73.25 to prevail.

The trading range for today is among the key support at 66.00 and the key resistance at 74.00.

The short term trend is expected to the downside as far as 79.20 remains intact with targets at 61.60.

Previous ReportSupport69.5068.7067.8567.6066.80Resistance70.5571.5072.2573.2573.70RecommendationBased on the charts and explanations above our opinion is selling oil with the breach of 69.50 targeting 67.60 and stop loss above 70.55, might be appropriate.