Oil: Prices point out to the raising channel top

The oil upwards movement for the past three weeks has been coherent with its raising channel. As we analyzed in the two previous analysis, the prices could experience a rebound from this channel bottom. Our first goal was the level of 82 - 83 dollars, where there was a resistance which coincides with the top levels that this commodity reached by the beginning of 2010.

This objective has been achieved. From now onwards, the question is if it will be able to overtake this level to initiate a new impulse to 85-86 dollars. The reply to this dilemma involves an assessment of the short-term tendency, which began by February the fifth. So far, the yesterday correction has not damaged it.
Therefore, it remains a raising potential. Due to the fact that prices develop their movement in a recovery scenario, the new projection can lead the oil to the level of 86 dollars.

Our technical recommendation is to sell partially on the level of 82-83 dollars and to close definitely long positions as soon as oil reaches the goal of 85-86 dollars/barrel.