Morning Report

Crude was able to achieve its primary targets of breaching the bullish pattern shown in yesterday's report, where it closely neared the resistance level for the descending channel presently at 80.00. Meanwhile, trading will prevail normally within this channel, with support levels existing almost in the middle of the channel; constantly pushing crude to the upside. From here we see that the expected direction for today is bullish over an intraday basis which built its base on 76.95 and targets $80.00 per barrel. Note: the breach of 76.95 will lead crude to move to the downside towards 75.35.

The trading range for today is among the key support at 75.35 and the key resistance at 80.00.

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 76.95 targeting 78.80 and stop loss below 76.20, might be appropriate.