Crude Oil Morning Report 02/6/2010

Crude traded yesterday in a sharp manner, where it managed to ascend and then drop helping mixed trades to return by touching 75.35, which show strong resilience in front of crude’s strong upside movement. Currently, signs of a bearish technical pattern are showing where its neckline is at 71.65.

We expect it to be breached when observing the ongoing negative pressure on crude due to stability achieved below the MA 100 and resistance 73.75.
Therefore,a bearish direction is expected over an intraday basis which will start when the mentioned neckline is breached, and it heads towards 70.45 then 69.15. The four hour candlestick closing will remain below 73.75, which is vital for chances of this scenario to continue.
The trading range for today is among the key support at 69.15 and the key resistance at 74.20.
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