Morning Report

Crude succeeded in insuring the daily close below main support for the current main bullish channel at 74.40; where it breached 50% Fibonacci correctional levelat 73.60, paving the way towards main correctional level of61.8% at 71.70.The stochastic shows oversold signs, which could push crude to retest 73.60 and then reverse to achieve an expected bearish direction over an intraday basis that initially targets 71.70 and then 70.40, paying attention to the daily close remaining below 74.40 and thus the bearish direction will prevail.

The trading range for today is among the key support at 70.40 and the key resistance at 76.45.

The general trend is to the upside as far as 47.20 remains intact with targets at 85.00.

Support72.4071.7070.4069.2568.00
Resistance73.6074.4075.6076.7078.00
RecommendationBased on the charts and explanations above our opinion is selling oil from 73.60 targeting 71.70 and stop loss above 74.40, might be appropriate.