Morning Report

The bearish technical pattern dominated throughout yesterday's midday report on crude's trading; thus, forcing it to descend within the minor descending channel, representing the flag pattern that targets the breach of its minor resistance levels at 77.65, to pave the way to achieve a return to resume the expected bullish short term direction; main targets exist around 79.60. The stochastic supports bullish expectations with a resistance impediment - 200 MA - at 77.00. It is vital that 75.60 remain intact so that the bullish short term direction may prevail.

The trading range for today is among the key support at 74.50 and the key resistance at 79.60.

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 77.00 targeting 79.60 and stop loss below 75.60, might be appropriate.