Morning Report

Crude continued its gradual ascend nearing the main resistance level – the previously breached main ascending channel's support level -, shown in the image above.Oil managed to form a number of bottoms, where a bearish technical pattern appears on the side image, where its resistance level is at 72.90 and support at 70.20. However, with negative signs appearing on Stochastic, we expect crude to move to the downside over an intraday basisinitiallytargeting 70.20 and then attempting to breach it to open the way to target levels around $65.00 per barrel. Notice: the daily close must remain below 72.90, so that the downside direction may continue.

The trading range for today is among the key support at 68.60 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 72.90 and targeting 71.50 and stop loss above 73.50, might be appropriate