Morning Report

Crude oil continued to trade within a narrow sideway range since last Friday, while noticing a strong support level standing up against the price's attempts to move to the downside at 65.50; forming a neckline for the bearish technical pattern, where we expect it to be the gateway to complete the expected downside move. We expect to continue the short term downside direction, after assuring the breach of 65.50 and closing onthe four hour chartsbelow it; thus, heading towards chief targets for today at 64.00 then 63.00. The stochastic is currently neutral, making us witness some fluctuations around the mentioned neckline to gain enough momentum to support the expected downside movement, while it is vital to take into consideration the importance of trading below 68.00 to maintain the short term downside move.

The trading range for today is among the key support at 62.65 and the key resistance at 69.20.

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 oil by breaching 65.50 and targeting 64.00 and stop loss above 66.60, might be appropriate.