Weekly Report 24 - 28 / May / 2010
Crude is currently movingoutsideof the path for the descending short term channel. This breach points out that a bullish correction may start. Stochastic is showing overbought signs; whereas the RSI is showing negative signs that may cause some mixed fluctuation. In overall, we expect a bullish correction for this week; targeting initially 73.35 and may extend towards 74.85 pointing out that a breach of 69.40 may make the expected bullish correction scenario that will resume the general bearish trend to fail.
The trading range for today is among the key support at 67.65 and the key resistance at 74.85.
The short term trend is to the downside as far as 79.20 remains intact with targets at 61.60.
Eye on oilSupport70.5569.4069.0068.2567.65Resistance71.1071.6572.1572.7073.35RecommendationBased on the charts and explanations above our opinion is buying the pair from 70.55 targeting 73.35 and stop loss below 69.40, might be appropriate.