Morning Report

Crude breached scattered resistance levels yesterday and hit into main pivotal resistance at 71.15, meeting with the resistance level for the minor ascending channel that organizes current trades within the flag pattern. This pattern, addition to main resistance, are supported by negative signs on the stochastic oscillator that make us expect a bearish intraday direction for today; where targets start at 69.30 and then witnessed more descend towards $68.00 per barrel. We should pay attention to the importance of trades remaining below 71.15, since the breach of this level is due to the inverted head & shoulders pattern, shown in the side image, which is supposed to turn the short term direction and assure the failure of the expected bearish trend's scenario.

The trading range for today is among the key support at 67.00 and the key resistance at 73.65.

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 selling oil from 70.70 targeting 69.90 and stop loss above 71.15, might be appropriate.

Forex Trader Library
Receive over 15 hours (8 CD's) of our best Forex trading education in one package! Containing the newest Advanced Forex CD, this education pack focuses on exactly what you need to know to become a successful Forex Trader.