Morning Report

Crude oil achieved an expected move to the downside last Friday; where the first awaited target was around 68.00, which had returned to incline in effect from trading occurring within a minor bearish channel organizing trading over an intraday basis. We still see the price showing bearish movement, where we expect a downside reversal attempting to breach the pivotal support level 68.20 – 50% correction level Fibonacci for the last ascending channel, shown in the image above – thus, opening a way to continue the short term bearish targets around 64.50. The awaited downside direction will prevail if71.75 is not breached.

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 at 70.15 and targeting 68.95 and stop loss above 71.00, might be appropriate.