Crude succeeded in achieving its bullish technical pattern targets, shown in yesterday's reports, and meet with the 50% Fibonacci correction - which turned into resistance -, in addition to the resistance channel for the descending channel that organizes currently trades, shown on the image above. The mentioned resistance levels, which comes clearly with overbought signs through momentum indicators, make us expect a bearish intraday that initially targets breaching 71.15 and then open a way to head towards $69.30 per barrel. Chances of the bearish scenario will prevail if we do not witness a clear breach of 73.65 and remain above it.
The trading range for today is among the key support at 69.30 and the key resistance at 75.60.
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 selling oil with the breach of 71.70 targeting 70.40 and stop loss above 72.60, might be appropriate.|
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