Weekly Report 5 - 9 / July / 2010
Crude stabilized trading below support for the key ascending channel after insuring the breach of the neckline for the bullish technical pattern, shown above. We still see that there are bearish targets for this pattern that have not been achieved yet, but we could witness some fluctuation and minor bullish correction due the bullish momentum appearing through the four hour channel, before continuing the expected overall bearish direction for this week. Technical targets start at 69.50 then 67.15, keep in mind the importance of stability below 74.55 to insure achieving this scenario.
The trading range for today is among the key support around 67.15 and the key resistance around 75.25.
The short term trend is to the downside as far as 84.00 remains intact with targets around 61.60.
Previous ReportSupport72.1071.7071.4570.4570.00Resistance73.3574.3575.2575.7576.65RecommendationBased on the charts and explanations above our opinion is selling crude around 73.35 targeting 71.70 and stop loss above 74.55, might be appropriate.