Crude achieved a sharp ascend yesterday, nearing resistance levels for the minor bearish channel that organizes trading for the current short term wave for crude. Momentum indicators entered overbought areas, where the stochastic seems to be showing a bearish negative cross over, thus making us expect a bearish movementover an intraday basis today; targeting levels around $77.00 per barrel. It is vital that the four hour closing remainsbelow 80.75 so that the bearish move may prevail. Meanwhile, the medium term direction remains bullish.
The trading range for today is among the key support at 76.75 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 80.75 and targeting 79.20 and stop loss above 81.55, might be appropriate.|