Crude Oil Morning Report 18/ June /2010

The negative pressure continued on crude due to the negative effect from momentum indicators ,causing a breach for the support of the ascending channel that has organized trading for the bullish wave from 69.50, especially after the pair has exited this channel and thereby showing signs of a bearish technical pattern as its suggested neckline is at 76.15.
The bearish direction is expected to continue appearing on Stochastic, which will lead to a breach and make us expect an initial bearish intraday trend; targeting 74.55 once again. Keep in mind that the breach of resistance levels between 76.80 – 77.30 helping crude return within the bullish direction and make the suggested bearish technical scenario.Oil
The trading range for today is among the key support around 74.55 and the key resistance around 79.50.

The short term trend is to the downside as far as 79.20 remains intact with targets around 61.60.

By: Yasir Mubarak
Senior Technical Analyst