Weekly Report 4 - 8 / April / 2011
After recording its lowest level last week around 102.69, crude touched the first target for the bearish harmonic pattern and returned to stabilize above 106.55; thereby, ending the formation and forcing us to reexamine the classical pattern. Note that stability above 106.55 will help it gain bullish momentum due to support by MACD, but in return we require a bearish correction due to the effect of overbought signs appearing through RSI. In overall, since crude stabilized above 106.55 this week, we expect more bullish activity.
The trading range for this week is among the key support around 103.20 and the key resistance around 112.50.
The short term trend is expected towards the upside as long as the daily closing is above 98.00 with targets at 113.35.
Previous ReportSupport107.30106.55105.70104.75104.30Resistance109.00109.65110.20111.35112.50RecommendationBased on the charts and explanations above our opinion is buying crude around 107.30 targeting 110.20 and stop loss with a daily closing below 105.70, might be appropriate.