Morning Report

Crude achieved an incline reaching the retest of the breached main support level to move to the previous upside that exists at 72.15, shown on the image above. Looking at the side image, we see that there is a bearish technical pattern on its way to complete its neckline at 70.50, where crude is trading below the resistance level for the bearish channel at 71.60 (highlighted in yellow), alongside negative signs appearing on the momentum indicators. Today, we expect a bearish direction on an intraday basis, where it will be able to breach 70.50 through it, thus opening a way to head towards 68.00 and then witness more downside movement towards the main target for the current short term wave around $64.00 per barrel. The downside direction will remain intact is the daily close remains below 72.15.

The trading range for today is among the key support at 67.00 and the key resistance at 74.80.

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 71.60 and targeting 70.50 and stop loss above 72.45, might be appropriate.