Weekly Report 3 - 7 / January / 2011

Crude stabilized above 90.50, where it is initially expected to test levels around 127% correction for the XA leg pattern from the suggested harmonic pattern around 92.60. In the meantime, a positive crossover is witnessed on stochastic and could assist crude in resuming the breach of the mentioned levels, where we witness a bullish trend continuing. On the other hand, the breach of 92.60 has not currently been assured, specifically since it is the possible reversal level forcing us to remain neutral in our weekly report, where we recommend following up our upcoming reports.

The trading range for this week is among the key support around 89.00 and the key resistance around 94.15.

The short term trend is expected towards the upside as long as trading is above 84.00 with targets at 99.00.

Previous Report

RecommendationBased on the charts and explanation above our opinion is remaining neutral until 92.60 is retested, might be appropriate for this week.