Weekly Report (May 16-20, 2011)

The heavy volatility seen last Friday did not exit the accepted range to preserve our expectations for the downside move. This week, crude is likely to carry more attempts to continue trading to the downside and that is according to the suggested wave count and trading within the ascending channel that crude should reach its support level at least. A daily closing below 96.60 might form a bearish pattern that is still under formation and not confirmed.

The trading range for this week is among the major support at 91.00 and the major resistance at 107.30.

The short term trend is to the downside with steady daily closing below 109.75 targeting 85.40.

Previous Report

Support97.2596.6095.7094.8094.15
Resistance100.40101.20101.80102.75103.60
RecommendationBased on the charts and explanations above our opinion is selling crude around 100.40 and take profit in stages at 96.60 and 93.15 and stop loss with daily closing above 103.60 might be appropriate this week