Crude Oil Morning Report 01/6/2010

Crude is moving according to yesterday’s suggested scenario that has neared the awaited main target at 75.35, but exiting the ascending channel with the breach of its support, in addition to stabilizing below  MA 100 alongside the negative signs momentum indicators are showing, where factors are pointing to more negative pressure on crude.

From here, we expected a bearish intraday direction; targeting the attack of pivotal support 73.10 that represents the suggested neckline for the bearish pattern that is currently being formed. Technical targets start at 72.45 then 71.55, while keeping in mind that this descend is still within the bearish correction formation for the last bullish wave.
The trading range for today is among the key support at 71.55 and the key resistance at 76.00.
The short term trend is to the downside as far as 79.20 remains intact with targets at 61.60.

By: Yasir Mubarak
Main Technical Analyst