Crude Oil Weekly Technical Report 3-7/12/2012

The price is showing  bottoming signs, the commodity has been consolidating recently, meanwhile, printing slight higher lows as seen on the daily chart above. On the other hand, oil has managed to break above the descending trend line of the falling wedge pattern shown on the chart, which is another bullish signal, however oil is currently flirting with the previous high and major resistance around 89.20-89.30, in addition to the 50-days SMA. Having that said, we have a bullish bias for oil this week, however to be more comfortable and confirm further upside, we need to see a clear break above 89.20 level.  

The trading range this week is expected among the key support at 85.00 and the key resistance at 94.00.

The short-term trend is to the upside targeting 104.65 then 110.55 as far as week`s session closes above 78.00.

Support 88.50 87.60 86.80 86.15 85.35

Resistance 89.20 89.80 90.30 91.25 92.00

Recommendation Based on the charts and explanations above, we recommend staying aside awaiting a confirmation signal.