Crude managed to build its base on the 200 MA around $77.00 per barrel to push to the upside once again and near forming a bullish technical pattern, shown in the side image. The expected scenario is being represented in achieving a minor bearish trend which will stabilize on 78.00 to complete through it the formation of the right shoulder, where it would be able to breach its neckline currently at 78.40 and head towards the primary target around 80.10. The expected bullish direction scenario will prevail if the four hour close is not seen below 77.40.
The trading range for today is among the key support at 76.25 and the key resistance at 81.10.
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 78.00 targeting 80.10 and stop loss below 77.10, might be appropriate.|