Crude continued trading around the 50 moving average within the bearish channel, which maintains organizing crude's movement. We see a harmonic bullish technical pattern scenario, but for it to be completed it must reach 76.80 and then rebound to the upside in an attempt to target levels above $79.00 per barrel. From here we expect a bearish intraday direction for today that requires the breach of 78.00 and then for it to rebound, seen in the image above. It is essential that the four hours close below 78.90 for the expectations to play out.
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 selling oil with the breach of 78.00 and targeting 76.80 and stop loss above 78.90, might be appropriate.|