Morning Report

Crude oil surged to the upside yesterday, after the release of the EIA report, where it touched the key resistance level at almost 70.90, which is the key support for the previously breached ascending channel. However, reaching this level will be accompanied by the stochastic entering overbought areas ; thus, making us expect for today, a downside move on an intraday basis where its first main targets are around 68.00. This decline remains as far as 70.90 is intact.

The trading range for today is among the key support at 66.20 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 selling oil by breaching 69.60 and targeting 68.00 and stop loss above 70.90, might be appropriate.