Morning Report

Oil reached the downside target expected on Friday reaching the key support level around 69.00 rebounding then to the upside pressured by oversold signals clearly seen on Stochastic, in addition to the formation of new support at 76.4% correction. For that we believe that today oil will indulge in an intraday upside move initially targeting 71.55, which needs to be monitored closely as it resembles one of the critical levels that determine the intraday and short term trends. For the upside move to prevail closing need to be seen above 69.25 over four-hour basis.

The trading range for today is among the key support at 67.00 and the key resistance at 73.15.

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 buying oil with the breach of 69.70 to 71.55 and stop loss below 68.90 might be appropriate