Crude continues trading almost perfectly within the bearish channel, shown in our previous report. Crude currently stands in the middle of this channel around the 50 moving average. By looking at the side image, we can see that there is a possible scenario that will achieve the bullish trend through the falling wedge pattern that targets the breach of its resistance level that in its role push the complete the inverted head & shoulders pattern. This scenario holds the keys to breaching the main resistance levels around 80.10 and requires trading to remain above 78.00 and target $83.00 per barrel.
The trading range for today is among the key support at 75.60 and the key resistance at 84.05.
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 buying oil at 78.90 and targeting 80.10 and stop loss below 78.00, might be appropriate.|