Crude was able to touch yesterday's support at 78.00, where it is trading around thatsupport while gradually ascending (to currently reach 78.65), asseen on the image above. The stochastic indicatoris trendingnear oversold areas, which makes us expect a bullish direction over an intraday basis for today, where it has built its base upon the current support and is initially targeting $80.00 per barrel and then 82.50. This expected rise will prevail if the four hour closing remainsabove 78.65.
The trading range for today is among the key support at 74.90 and the key resistance at 83.10.
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 78.65 and targeting 80.00 and stop loss below 77.60, might be appropriate.|