Oil Morning Report 27/5/2010

Crude Oil

Crude succeeded in achieving yesterday’s suggested scenario breaching the neckline at 70.95 and continued to steadily trade within the current ascending channel shown above…..
More expected bullish intraday movement will be seen due to effects of the ascending channel mentioned, where the main targets is at 73.45.
Keep in mind that the negative signs appearing through momentum indicators could cause some fluctuation and retest the broken resistance that meets with support for the ascending channel at 70.95. It is vital the stability is achieved below mentioned support, which will weaken achieving the suggested intraday ascending scenario expected for today.
The trading range for today is among the key support at 69.00 and the key resistance at 73.45.The short term trend is to the downside as far as 79.20 remains intact with targets at 61.60.

By: Yasir Mubarak

Main Technical Analyst