Crude Oil Morning Report 16/ June /2010

Crude succeeded in achieving yesterday’s scenario flawlessly stopping at the main target that has signaled to the importance of observing crude at it – $77.00 per barrel -. The importance of this level is the fact that it is the retest level for the breached support that has appeared on the weekly chart shown above, accompanied by overbought signs through momentum indicators.

This makes us expect a correctional bearish  trend; targeting the retest level as its breached neckline yesterday is at 75.75 initially, and then insure the short term direction.

To recap, it is vital to keep an eye on resistance levels at 77.10 and support 75.75.
The trading range for today is among the key support around 75.35 and the key resistance around 78.35.
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