Morning Report

Crude is currently trading around 72.90, which is considered to be the most important levels for crude today, where it is a separator between the positive and negative. Meanwhile, negative reversal signs are appearing on the momentum indicators, where we also see that the technical price composition had taken a ascending channel to which it was able to test the main resistance level, at the same some we see that the price had previously face multiple peaks between 73.50 and 74.80. From here, we see that the direction most likely to be taken is the bearish direction, where we trading to remain below 72.90 to insure it. The candle composition ever since crude was able to test the resistance level for the ascending negative channel, insures our expectations for today.

The trading range for today is among the key support at 68.60 and the key resistance at 76.15.

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 73.00 and targeting 71.50 and stop loss above 74.80, might be appropriate.