Crude Oil Morning Report 06/ August /2010

Crude has found strong support around 81.55 and thereby this support will form the neckline for the bearish technical pattern shown in the image below, alongside clear overbought signs appearing on momentum indicators. We expect a bearish intraday trend that will start with a clear breach of the mentioned neckline heading towards technical targets that start at 80.70 then 79.90. The breach of 82.55 and building a base above it will weaken chances of resuming today’s expectations. Oil
The trading range for today is among the key support around 79.90 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