Crude was able to completely achieve the expected bearish targets for yesterday and strongly halt at the psychologicallevelof $70 per barrel, in front of achieving more downside movement. The support level for the descending channel is being accompanied by bullish signals through momentum indicators, which make us expect a bullish direction over an intraday basis for today; targeting 72.60 and then resuming the bearish short term direction that will remain intact if the daily close remains below 74.65.
The trading range for today is among the key support at 68.70 and the key resistance at 73.60.
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 with the breach of 71.20 targeting 72.60 and stop loss below 70.15, might be appropriate.|