Morning Report

Crude was able to achieve the bearish pattern's targets in yesterday's report and stop descending at 61.8% correction level - shown in the side image -. Trading continued flawlessly within the descending channel, where we await its breach to open a way to complete the bullish medium term direction. Our expectation for today is a bullish direction over an intraday basis which targets 80.10 initially, requiring the four hours to close above 77.80.

The trading range for today is among the key support at 76.25 and the key resistance at 81.00.

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 from 77.80 targeting 79.35 and stop loss below 79.95, might be appropriate.