Crude oilsucceeded in breaching yesterday's resistance level at 71.15, where trading settled at the awaited target – resistance level for the minor declining channel, shown in the image above – which is currently at 72.60. It is vital to pay attention to this level, because it represents the neckline for the bullish technical pattern, confirmed with a four hour closing above this level which will take oil towards the technical targets at 76.00 and 78.60. For today, we expect an upside trendon the intraday basis, while chances of achieving a minor downside correctionfor yesterday's upside wave is possible. The short term upside trendwill prevail if trading remains above 68.45.
The trading range for today is among the key support at 67.00 and the key resistance at 77.40.
The general trend is to the upside as far as 47.20 remains intact with targets at 85.00.
|Recommendation||Based on the charts and explanations above our opinion is buying oil with the breach of 72.60 To 74.60 and stop loss below 71.45, might be appropriate.|