Morning Report

Crude neared the awaited target since yesterday, where it rebounded from 50% correction Fibonacci to resume the bullish direction within the clear ascending channel, shown on the image above. It was able to form a bullish technical pattern where it's neckline is at 81.45, clearly appearing in thesecondary image. From here we expect a bullish direction over an intraday basis that supports the ascending short term move for today, where it's main targets start at $84.00 per barrel. It is vital that the four hour closing remains above 81.45 so that the bullish move can prevail; whereas 79.85 should also remain intact so that the ascending short term wave may continue.

The trading range for today is among the key support at 77.60 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.

RecommendationBased on the charts and explanations above our opinion is buying oil at 81.45 and targeting 82.50 and stop loss below 79.75, might be appropriate.