Crude sharply pushed to touch $82.00 per barrel and reverse to form a horizontal support level representing the neckline for the bearish technical pattern, shown in the secondary image. We expect this pattern to open a way to completing the pair's bearish correction after achieving a breach of 80.70 and then head towards 79.45. The general upside direction is moving at a steady pace, where the current short term wave isgradually incliningthrough the clear ascending channel, as seenin the primary image. Meanwhile, we expect the bullish short term direction to continue if the four hour closing remainsabove 78.75.
The trading range for today is among the key support at 75.40 and the key resistance at 84.00.
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 selling oil with the breach of 80.70 and targeting 79.45 and stop loss above 81.80, might be appropriate.|