Crude oil price achieved a sharp decline yesterday, breaching the key support level for the ascending channel and achieving a daily close below it; thus, opening the way for a downside reversal. Through the image above, we find that there is asupport level appearing at 68.00, halting the pair's move to the downside for now, where this level is represented through a neckline for the bearish technical pattern; pushing the pair towards more downside actions,in which itwill target64.00 – 63.00 dollar per barrel. From here, we expect today's trading will be volatile, since oversold signs are appearing on the stochastic, pushing the pair to retest the breached support level which is currently at 70.00. We should observe the pair's movement around this level, to ensure the shortand mediumterm directions for the pair. The short term direction is reversing to the downside and requires the daily close to remain below 70.00.
The trading range for today is among the key support at 65.20 and the key resistance at 73.00.
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 68.85 targeting 70.00 and stop loss below 68.00, might be appropriate.|