Crude Oil Weekly Technical Report 19-23/11/2012

Oil surged to the upside exceeding 86.10-86.20 levels and touched the bearish correction channel resistance which meets with the retest level at 87.70, in line with Stochastic entering overbought areas. This adds momentum to the current resistance levels and an opportunity for a downside reversal. However, we remain neutral in order to confirm the strength of the current levels ; breaching those levels to the upside them will end the bearish correction and attempt to negate the downside pattern that completed earlier and reverse oil back to the upside.

The trading range expected for this week is between the key support at 82.00 and the key resistance at 92.00.

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 87.00 86.10 85.00 84.50 84.00

Resistance 87.80 88.60 89.00 89.65 90.00

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