Crude Oil Morning Report 09/6/2010

Crude stabilized above the retest level for the previously shown bearish technical pattern; therefore causing us to currently drop it from current calculations. 
The bullish triangle appearing within the descending channel, shown in the image above, is controlling crude’s short term trading and thereby making us expect a bullish intraday that targets this channel’s resistance level at 73.70 before resuming the bearish short term trend.

The stochastic is showing negative signs that are impeding crude’s attempt to breach the ascending triangle pattern shown above.
Two factors should be taken into consideration; firstly, the fact that the bearish trend is still descending, while the current ascending is considered to be natural trading within the descending channel; secondly, is that the breach of 71.45 will pave the way towards resuming the bearish short term direction directly without the need to correct.
The trading range for today is among the key support around 69.15 and the key resistance around 74.20.
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