Crude fell according to yesterday's expectations (yesterday's report), where it had reached levels near the target and rebounded from 23.6% correction; however, crude is still stable below 20 and 50 MA. It may be attempting to form a bearish technical pattern to continue its downside move as this expectation is derived from the breach of the original bullish direction that may be the neckline for the pattern, which is 23.6% correction at 77.95. We still see crude witnessing more bullish movement towards 38.2% correction levels at least at 75.50; meanwhile on the stochastic, we could expect crude to ascend in a temporary correction wave to complete the bearish technical pattern and thus rid of the oversold signs, to continue its downside move towards the suggested target.
The trading range for today is among the key support at 74.70 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 selling oil at 79.30 and targeting 75.50 and stop loss above 80.40, might be appropriate.|