Weekly Report 27 - 31 / December / 2010

According to the four hour image above, crude built a base within the ascending price channels that point to a bullish short term trend, supported by SMA 50, which is carrying crude from below; therefore, we expect to witness a bullish trend this week that first targets levels around $94.00 per barrel. Keep an eye on crude's pattern when reaching the level cautiously, where breaching it will pave the way for a speed up in the upside short term direction. Note that breaching 89.15 will postpone resuming bullish targets this week.

The trading range for today is among the key support around 89.15 and the key resistance around 94.00.

The short term trend is expected towards the upside as long as trading is between 84.00 and 99.00 with weekly closings.

Previous Report

Support90.7090.0089.7589.1588.75
Resistance91.8592.1092.8093.4594.00
RecommendationBased on the charts and explanations above our opinion is buying crude around 90.70 targeting 93.00 and stop loss below 89.15, might be appropriate.