Morning Report

Crude was able to achieve its first awaited target for yesterday at 78.50, where trading stabilized around it while the pair was facing a hard time in breaching this level, which represents the 50 MA. The stochastic entered overbought areas, which adds onto the obstacles on top of the awaited breach; where chances of attempting to slightly correct to the downside with a possible base on 77.80 and then rebound to achieve the bullish intraday trend expected for today. The main targets for the expected ascend are around 80.20, while taking into consideration the importance of the four hours closing above 76.15 to maintain chances of achieving the mentioned bullish trend.

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 77.80 and targeting 78.95 and stop loss below 77.00, might be appropriate.