Crude managed to successfully build a base on 78.00 yesterday, strongly pushing towards the upside to achieve primary target around 79.25; breaching the neckline for the inverted head & shoulder pattern, shown yesterday. It managed to retest the breached level numerous times, therefore, we expect a bullish direction for today which targets first the breach of the main resistance at 80.20 and then strongly opening the way towards 83.00 area. It is vital that trading remains above 78.00 for the bullish move to remain intact.
The trading range for today is among the key support at 76.80 and the key resistance at 82.50.
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 from 79.25 targeting 81.00 and stop loss below 78.50, might be appropriate|