Morning Report

Crude oil's price continues trading within the minor ascending channel, which we think will drive the price to gradually reach the main resistance level 68.00, in an attempt to retest the breach that occurred last Thursday, since it has not been retested since that time. We expect momentum indicators to enter overbought areas to reach the mentioned retested level; thus, making us wait for trading to reverse to the downside after touching level 68.00. We expect the short term downside direction to being touching the final resistance level, where the main target is reaching level 65.00 after achieving a clear breach in the minor support level 66.60. Chances of achieving this downside move will remain intact if the daily close remains below level 68.00.

The trading range for today is among the key support at 62.65 and the key resistance at 70.20.

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 at 68.00 and targeting 66.60 and stop loss above 68.70, might be appropriate.