Morning Report

Crude oil continued its sharp move to the downside; breaching key support level 68.00 – the mentioned neckline yesterday – and nearing the first target awaited to be breached, achieving the lowest level at 65.57. The short term is confirmed to have reversed to the downside, where we await some upside correction for today; pressuring through positive signs that appear on the momentum indicators, where we expect them to reach 67.15; as the highest limit to retest the breached support level at 68.00 and then returning to continue its move to the downside, where initarl targets reside at 64.00 – 63.00. The current downsidetrend will remainas far as 70.00 is intact on the daily charts.

The trading range for today is among the key support at 63.00 and the key resistance at 70.00.

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

Support65.5064.6563.7563.0062.50
Resistance67.1568.0068.8569.4070.00
RecommendationBased on the charts and explanations above our opinion is selling oil at 67.15 targeting 65.15 and stop loss above 68.25, might be appropriate.