Crude was able to achieve yesterday's targets, after breaching the neckline for the bearish technical pattern, where it rebounded from the positive ascending pressure from 38.2% and 50% correction levels; pushing crude to retest the breached neckline at 70.50. The stochastic is showing negative bearish signs, making us expect a downside move over an intraday basis targeting 68.50 and then attempting to openthe way to reach the main target for the bearish short term direction around $64.00 per barrel. It is vital that the daily close remains below 72.60 to maintain the continuation of the downside direction.
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.
|Recommendation||Based on the charts and explanations above our opinion is selling oil at 70.50 and targeting 69.00 and stop loss above 71.40, might be appropriate.|