Morning Report

Crude succeeded in achieving the bearish targets mentioned in last Friday's report, which is trading naturally within the minor descending channel, shown in the image above; reaching support which comes inline with positive signs on the stochastic, are elements that make us expect a bullish trend over an intraday basis, which mainly targets reaching resistance around 80.45, while keeping in mind key resistance is at 78.50; impeding crude's bullish move. The expected bullish trend for today will prevail if the four hours close above 76.40.

The trading range for today is among the key support at 74.75 and the key resistance at 81.25.

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 77.25 and targeting 78.50 and stop loss below 76.40, might be appropriate.