Crude continue the negative pressures in an attempt to acquire the complete bearish targets for the downside pattern explained in our previous reports; oil was capable of breaching the support level for the descending channel at 76.30 and then reversed to the upside to start the expected upside move over short term basis. Momentum indicators are providing positive signals supporting the awaited upside move. It is important to take into consideration that the upside move requires trading to remain intact with daily closings above 73.60, and targets start from 75.60 and then 76.70.
The trading range for today is among the key support at 71.65 and the key resistance at 78.00.
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 73.60 to 75.60 and stop loss below 72.40 might be appropriate|