Crude Oil Morning Report 04/ August /2010

Crude fluctuated yesterday around resistance for the bullish channel shown below, where it is currently at 82.25 as momentum indicators are showing negative signs that make us expect a bearish intraday direction; initially targeting 81.10 that are moving away to retest the previously breached neckline at 79.35. Keep in mind that stability above 82.25 will push crude to resume the bullish short term trend without the need to currently attempt a bearish correction. Oil
The trading range for today is among the key support around 80.00 and the key resistance around 84.00.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