Oil Midday Report 27/5/2010

Crude pushed upwards to touch the awaited main target at 73.45 that has formed strong resistance in front of the current crude price due to negative signs that are appearing through momentum indicators. These factors bring up a difference bearish correction scenario that could meet the minor ascending channel’s support level at 72.10, followed by resuming the bullish wave….

This in its role will complete the possible bullish pattern, which points to more awaited bullish movement over the short term basis.
Meanwhile, observing trading for today could be beneficial, specifically for resistance 73.45 and support 72.10 which hold the fate of the upcoming short intraday trend.
The trading range for today is among the key support at 70.10 and the key resistance at 74.40.
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