Today's diagram assures our report yesterday, which pointed to a possibility of a negative bearish technical pattern appearing, thus insuring that crude is heading towards 38.2% correction around 75.45. Meanwhile, a right shoulder point is formed from the head and shoulder pattern, as well as the 20 and 50 MA, where it is ready to reverse to the downside; whereas the stochastic is currently in extremely overbought areas alongside the bearish direction continuing on the RSI indicator. From here we can expect a bearish direction for today, where its possible occurrence could remain intact below 80.40 when the four hours close. The downside move will prevail below 77.90, only if the negative pattern, mentioned above, is completed.
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 79.35 and targeting 75.50 and stop loss above 80.40, might be appropriate.|