Morning Report

Crude succeeded in achieving the awaited targets around 69.30, while passing this level with descending by an additional dollar; whereas the daily close was above 69.30 - 76.4% Fibonacci correction level -. Crude is currently bullishly correcting, where we expect it to touch resistance levels for the descending channel at 70.10 that organizes currently trades, and then reverse to achieve a possible bearish intraday direction for today's trades; targeting $67.00 per barrel. Keep in mind that the expected bearish direction requires the daily close to remain below 70.10.

The trading range for today is among the key support at 67.00 and the key resistance at 71.15.

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

 
Support68.4568.0067.6067.0066.50
 
Resistance70.1071.1571.7072.4573.65
 
RecommendationBased on the charts and explanations above our opinion is selling oil from 70.10 targeting 68.45 and stop loss above 71.10, might be appropriate.