Weekly Report 14 - 18 / June / 2010
Crude continues trading within the ascending channel shown above, according to the scenario mentioned in our previous reports, where the last bearish movement that touched this channel support is around 73.25 meeting with the MA 100 and is accompanied by positive signs appearing through the stochastic. These factors will push crude to ascend as we expect it will attempt to attack the suggested neckline for the bullish technical pattern as its neckline is at $77.00 per barrel. Keep in mind that the breach of 73.25 will lead the awaited bullish trend to fail.
The trading range for this week is among the key support around 72.50 and the key resistance around 78.50.
The short term trend is to the downside as far as 79.20 remains intact with targets around 61.60.
Previous ReportSupport74.3573.7073.0072.4571.70Resistance75.1075.7576.0077.0077.65RecommendationBased on the charts and explanations above our opinion is buying crude around 74.35 targeting 77.00 and stop loss below 73.00, might be appropriate.