Weekly Report 21 - 25 / February /2011

After resuming the highlighted first harmonic target in last week's report, while crude ascended to resume previous expectations. We currently moved to a new contract (future delivery contracts for April), while crude paved a way for a bullish gap with a 300 point difference between the previous and new contract; however, it is vital to note the importance that crude returned to trade above the bullish trend's initial support level and thereby 92.50 is expected to be retests in case crude is successfully breached. Meanwhile, a bullish extension is witnessed and therefore this week's trend is mixed and leaning to the downside for some time, then push to the upside once again to retest critical levels previously highlighted.

The trading range for this week is among the key support around 87.30 and the key resistance around 94.15.

The short term trend is expected sideways as long as trading above 84.00 and targeting 99.00.

Previous Report

RecommendationBased on the charts and explanations above our opinion is buying crude around 90.50 targeting 92.50 and stop loss below 89.05, might be appropriate.