Crude continued to push upwards within a bullish channel, organizing the short term bullish direction, seen in the image above. However, it managed to near the keyresistance for this channel, which came inline with momentum indicators entering overbought areas; thus, making us expect to achieve some bearish correctiontargeting 77.60 – 61.8% Fibonacci for Friday's incline– then rebound to achieve a bullish intraday direction that supports the short term upside move, where its targets start at $80.00 per barrel to then witness some more upside movements towards $85.00. The expected upside direction for today will prevail if 76.20 remains intact.
The trading range for today is among the key support at 73.30 and the key resistance at 82.50.
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 buying oil at 77.60 and targeting 78.90 and stop loss below 76.75, might be appropriate.|