Weekly Technical Analysis for Crude Oil 31/5/2010

Crude is trading naturally within the ascending channel that organizes the current bullish short term wave’s trading shown above, where it neared achieve a flawless bullish technical pattern as its neckline is at 75.35, mentioned in the last week’s reports. ……..

The last base built on support for the ascending channel that is accompanied by positive signs from the stochastic that make us target the mentioned neckline and then attempt to breach is to the upside to pave the way to achieve the expected bullish trend this week; main targets start at 77.00 and then attempt to push upwards towards $80.00 per barrel.
Keep in mind that the breach of 73.10 will weaken chances for the bullish wave to currently prevail.The trading range for today is among the key support at 72.45 and the key resistance at 78.00.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