Crude Oil Morning Report 29/ June /2010

Crude was not able to surpass 61.8% Fibonacci correction and reverse to the downside as it currently attack  SMA 50. The minor bearish technical pattern appearing on the short term trends, its neckline was breached at 77.70, where we see it forming a push towards retesting the previously breached bullish technical pattern at 75.75. Oil
Meanwhile, trading is still occurring in a natural way within the ascending short term channel shown above; therefore, we expect a bearish intraday trend that initially targets 75.75 then 74.10.

Keep in mind that stability above 79.00 could cause the expected bearish direction scenario to fail.The trading range for today is among the key support around 74.10 and the key resistance around 79.50.
The short term trend is to the downside as far as 84.00 remains intact with targets around 61.60.

By: Yasir Mubarak
Senior Technical Analyst