Crude Oil Midday Report 30/ June /2010

Crude strongly pushed to the upside after breaching 75.75 but halted at the MA 50, in addition to 38.2% Fibonacci correction, standing as a barrier in front of achieving more upside movement. Oil

Momentum indicators are gradually ridding of bullish momentum, thus maintaining chances of resuming the bearish trend intact; pointing to an ascend occurring since this morning, which is considered to be a natural bullish correction.

We expect the overall bearish direction to continue today due to the effect of the factors mentioned above, alongside the bearish technical pattern in our morning report.It is vital that stability is achieved below 77.20 to achieve the suggested scenario.The trading range for today is among the key support around 73.10 and the key resistance around 77.20.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