Crude Oil Morning Report 31/ August /2010

Through the image above, we find that a bullish wave has started after breaching resistance for the bearish short term channel that halted at 38.2% Fibonacci correction; whereas the bullish correction is moving within the minor ascending channel, where the negative pressure on crude is forcing it to trade below SMA 50 and thereby chances of achieving more bearish direction is evident. Oil
In return , Stochastic is showing clear oversold signs, where these signs influence us to recommend observing trading today specifically for support of the bullish channel 73.00, since breaching it paves the way towards  returning within the bearish short term trend that has temporarily halted to correct to the upside as shown above.The trading range for today is among the key support around 70.70 and the key resistance around 75.40.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