Morning Report

Crude's was stuck in yesterday's trading between the breach neckline for the previously mentioned bullish pattern and main resistance level for the descending channel - currently at 80.15 -. We think that these trades are gaining the required bullish momentum for crude to push it to move upwards to breach the mentioned main resistance level, at the same time a bullish technical pattern formation over an intraday basis - shown in the side image - could possibly be the desired mover of the awaited key push needed. From here we see that expected direction for today is bullish over an intraday basis mainly targeting $82.00 per barrel, while maintaining the four hour close so that the expected ascend could prevail.

The trading range for today is among the key support at 77.00 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.

RecommendationBased on the charts and explanations above our opinion is buying oil with the breach of 80.20 targeting 81.60 and stop loss below 79.10, might be appropriate.