Morning Report

Crude was not able to remain above minor support ,mentioned yesterday at 77.00, where it will be breached and head directly towards support levels for the descending channel which organizes current trading around 75.30. Crude's reaching support levels, in addition to major oversold signs thatare appearing through the stochastic oscillator; thus, making us expect a bullish intraday direction for today which initially targets minor resistance 77.15 and then ascends more towards main resistance 80.00. It is vital that 75.30 remain intact to keep chances of achieving an expected bullish direction.

The trading range for today is among the key support at 75.65 and the key resistance at 79.40.

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 75.30 targeting 77.15 and stop loss below 74.25, might be appropriate.