Morning Report

Crude achieved a bearish direction yesterday, where it neared the awaited support at 74.00 and pushed to the upside once again to currently come close to the key resistance level at 76.15. the clear overbought signs appearing on momentum indicators are making use expect crude to witness some bearish correction starting right away after breaching the minor support for the bearish technical pattern, shown in the side image, at 75.25; then it will head towards 75.60, forming the support level for the main ascending channel. From here we expect an intraday bearish direction for today, where these expectations will prevail if 76.15 is not breached and achieves a four hour close above it.

The trading range for today is among the key support at 71.60 and the key resistance at 78.50.

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 with the breach of 75.25 and targeting 73.60 and stop loss above 76.15, might be appropriate.