Crude Oil weekly Report 07/6/2010

Crude managed to achieve a sharp descend last Friday as it breached the neckline for the sugg ested previous neckline at 71.60, open trading this week on a bearish price gap.

Momentum indicators are showing oversold signs that could help push crude to cover the gap achieved at 70.95, before heading towards resuming the expected bearish trend for this week to achieve targets for the initial bearish technical pattern at $67.00 per barrel. The breach of resistance between 71.60 – 72.45 will weaken chances of achieving the suggest scenario.
The trading range for today is among the key support at 65.60 and the key resistance at 74.00.
The short term trend is to the downside as far as 79.20 remains intact with targets at 61.60.Oil

By: Yasir Mubarak
Main Technical Analyst