Crude Oil Midday Report 02/ August /2010

Affected by the bullish pattern that is appearing on the below chart, oil inclined once more and succeeded in entering the previously broken bullish channel. Momentum indicators still show negative signs and thus; the suggested bearish scenario is still valid as we discussed in our weekly report. Note that, we should watch out the daily closing very carefully as a closing above 79.15-79.35 could confirm the resumption of the bullish direction.
The trading range for today is expected between the support at 77.60 and the resistance at 80.50..The short term trend is to the downside as far as areas of 84.00 remain intact targeting 61.60.

By: Yasir Mubarak
Senior Technical Analyst