Crude Oil Morning Report 03/6/2010

Yesterday’s pivotal support was at 71.65 showing a strong stance in front of crude’s strong attempts to push upwards and attack 23.6% Fibonacci correction, which has currently turned into resistance at 73.75. Through the image above, we are presented with two scenarios; first, reaching 75.75 and completing the bullish technical pattern due to strong support from 50% Fibonacci correction that has pushed crude upwards yesterday, second is building a base on 73.75 then reversing towards 71.65 to form the bearish technical pattern that has formed a double top pattern due to support from the stochastic.

Crude is expected to succeed at breaching the current resistance, and then achieve a bullish intraday direction that mainly targets 75.75. The four hour closing for the 73.75 level holds the keys to insure today’s direction.
The trading range for today is among the key support at 71.65 and the key resistance at 75.75.
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