Crude Oil Morning Report 03/ August /2010

Crude yesterday strongly pushed to the upside due to the effect of the bullish pattern at 79.35, where it touched resistance for the bullish short term channel that is currently around 82.00. Momentum indicators are giving off negative signs that make us expect crude to bearishly reverse to retest the breached neckline before resuming the bullish trend;  therefore, we expect a bearish intraday trend that is a correctional direction and retest process that targets 79.35, where this descend initially breaches 80.70. Keep in mind that the breach of 82.00 will pave the way towards resuming the bullish direction.  Oil
The trading range for today is among the key support around 79.35 and the key resistance around 83.60.
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