Crude returned to test the resistance level for the descending channel that organizes present trades on the short term, which is at 73.20 after achieving the bullish pattern's targets mentioned yesterday. Momentum indicators show overbought signs; therefore chances of resuming a bearish direction will remain intact. From here, we expect a bearish intraday targeting 71.70 mainly and then 69.30, which requires 73.20 to remain intact as the four hours close below it. The breach of this level will pave the way to complete the bullish technical pattern, which is supposed to reverse the short term direction into bullish, which initially targets $76.00 per barrel.
The trading range for today is among the key support at 69.30 and the key resistance at 76.00.
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 from 73.20 targeting 71.70 and stop loss above 74.20, might be appropriate.|