Technical Oil (2010-08-24)

Crudestabilized below the pivotal resistance of 74.15 achieving a closing below it, alongside the bearish channel that controls the short termbearish wavethat has started from the recorded topof82.95. We see that more of the bearish intraday direction is expected as upcoming targets are around 71.40. Momentum indicators are showing oversold signs that may cause some fluctuations and minor bullish correction before heading towards suggested targets; whereas keep in mind that resuming them requires the daily closing below pivotal resistance levels that are between 74.15 - 74.60.

The trading range for today is among the key support around 71.40 and the key resistance around 74.60.

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

Previous Report

Weekly ReportSupport72.3571.4071.0570.7570.10Resistance73.4574.1574.6075.3075.80RecommendationBased on the charts and explanations above our opinion is selling crude around 73.45 targeting 71.40 and stop loss above 74.60, might be appropriate.