Crude Oil Morning Report 08/6/2010

Crude continues fluctuating around the retest level shown yesterday 71.60 but it was not able to stabilize above it; thereby maintaining the suggested scenario yesterday intact. 
The stochastic lost bullish momentums, alongside signs of a bearish technical pattern are appearing –rising wedge-. These factors encourage us to expect a bearish intraday trend that will start with the breach of 71.10 to activate the bearish pattern and head towards 69.15 initially.

Keep in mind that the breach of 72.45 will pave the way for more upside movement that may directly reach $74.00 per barrel.
The trading range for today is among the key support around 69.15 and the key resistance around 73.55.
The short term trend is to the downside as far as 79.20 remains intact with targets around 61.60.

By: Yasir Mubarak
Main Technical Analyst