Crude continued trading normally within the bearish channel, shown in previous report, after an attempt to breach it yesterday had failed. The side image seems to be showing that a bearish technical pattern has formed, where its neckline is at 79.45. We expect crude to breach this level and reverse towards achieving its targets currently around 78.00. From here the expected direction for today remains bearish over an intraday basis, which requires trading to remain below 80.10;noting that an importantsupport resides ahead at 78.80 which might restrict the downside move towards the targets mentioned.
The trading range for today is among the key support at 75.60 and the key resistance at 82.85.
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 with the breach of 79.45 and targeting 78.00 and stop loss above 80.10, might be appropriate|