Crude Oil Midday Report 03/6/2010

The mixed signals pointed in our morning report are starting to affect crude, where it managed to breach the awaited resistance level at 73.75; but due to the 100 MA and the negative cross over on Stochastic crude is pressured to descend, despit e of the four hour closing above the breached resistance.

Our morning expectations remain intact, keeping in mind that the breach of 72.45 will pave the way to the downside to activate the double top patter previously discussed.
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