Crude oil inclined to touch the pivotal resistance level – previously breached support level for the upside direction - currently at 71.10 before returning to close below this level, keeping the downside direction intact. From here, we expect a downside direction on a short term andintraday basis for today; where the RSI 14 supports our outlook as it neared overbought areas. Thus, we expect the downside move to target 66.20, after the pair breaches the minor support at69.55. The 200 MA protects the downside movement that requires trading to remain below 71.10 to maintain its continuation.
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.
|Recommendation||Based on the charts and explanations above our opinion is selling oil with the breach of 69.55 and targeting 68.00 and stop loss above 70.50, might be appropriate.|