Crude started its trading for today below the 20 MA, thus showing a possibility of a bearish wave targeting the 50 MA at 78.75. Despite the medium and short termtrends remainto the upside, we see that a bearish correction is required; as we see a downside adjustment on the RSI index. We might witness some bearish moves if crude is able to breach 23.6% correction, keeping the possibility of a bearish correction as far as 81.75 remains intact.
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.
|Recommendation||Based on the charts and explanations above our opinion is selling oil at 79.80 and targeting 77.90 and stop loss above 80.80, might be appropriate.|