Crude Oil Morning Report 05/ August /2010

Crude continued fluctuating around resistance for the bullish channel without being able to stabilize above it – currently at 82.65 -; thus, maintaining yesterday’s suggested scenario due to support from negative signs appearing through momentum indicators. From here, we can expect a bearish intraday direction that will initially start with the breach of 81.90 and targets start at 80.45 then 79.35. We point out that building a base above 82.65 will weaken chances of the awaited bearish trend to prevail. 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