Weekly Report 20 - 24 / December / 2010

Today, we return to review the harmonic pattern that was suggested for some time since this pattern has fully been completed around level 90.50, where the pattern has taken a butterfly shape that has not achieved any target from its pattern's targets. Hence, we expect a bearish direction still valid since we do not witness any closing above 90.35; whereas a base is built below 87.30 will cause a clearer bearish trend according to the reasons mentioned in our previous reports that we recommend reviewing.

The trading range for today is among the key support around 84.60 and the key resistance around 92.60.

The short term trend is expected sideways as long as trading is between 90.50 and 70.00 with weekly closings.

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling crude around 89.05 targeting 84.60 and stop loss above 90.50, might be appropriate.