Morning Report

Crude oil failed to close above the 72.40 level as seen on the above four hour charts as it returned once again below the 20 MA at 71.80 which resulted in the diminishing of bullish momentum. Despite we still believe the medium term trend is to the upside within an ascending channel, the pair needs a downside correction in an attempt to gather bullish momentum. The decline for today remains as far as 72.40 is intact on the four hour charts.

The trading range for today is among the key support at 69.05 and the key resistance at 75.25

The general trend is to the upside as far as 47.20 remains intact with targets at 85.00

RecommendationBased on the charts and explanations above, our opinion is selling crude from 71.80 to 70.00 and stop loss above 72.40 might be appropriate.