Weekly Report June 28 - July 2 / 2010

The retest level previously shown stood around 75.75 to push crude strongly to the upside heading towards resistance for the main bullish channel at 81.70 with some expected bearish correction, due to the negativity on momentum indicators. In overall, we expect a bullish direction for this week as targets are mainly around 81.70, where these expectations of a bullish direction will remain intact as long as stability is achieved above 77.20.

The trading range for today is among the key support around 75.75 and the key resistance around 81.70.

The short term trend is to the downside as far as 84.00 remains intact with targets around 61.60.

Previous ReportSupport78.0077.2076.4075.7574.90Resistance79.3080.0080.9081.7082.50RecommendationBased on the charts and explanations above our opinion is buying crude around 78.00 targeting 80.00 and stop loss below 77.20, might be appropriate.