Crude Oil Midday Report 03/ August /2010

Crude ascended once again towards the resistance for the bullish channel that currently moved to the upside towards 82.10, alongside momentum indicators’ ongoing overbought signs. Thus, chances of resuming the bearish reversal and suggested retest mentioned this morning remain intact. We hold onto our morning expectations as we await for the breach of 81.05, keeping in mind that stability above 82.10 will push crude towards resuming the bullish trend without the need to correct to the downside.  OilThe 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