Morning Report

Crude attempted to breach support for the main bullish direction twice; whereby crude returned to sharply close above this level, which is currently at 73.95. Trading returned within the bearish channel, once again, presently nearing pivotal resistance represented in the 200 MA at 76.90. We await a clear breach for this level to achieve an expected bullish intraday direction, which should touch resistance for the descending channel around 79.70. The negative signs appearing on the stochastic oscillator could cause some mixed trading from time to time. The expected bullish direction requires the daily close to remain above 73.95.

The trading range for today is among the key support at 73.65 and the key resistance at 79.70.

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 with the breach of 76.90 targeting 78.00 and stop loss below 76.00, might be appropriate.