Morning Report

Crude was able to abort the bearish scenario, which was near formation yesterday, and stabilize above the support level for the ascending channel, seen on the chart above. A possible bullish pattern combination requires it to be completed to build a base on support 73.85 and then ascend to breach the proposed neckline at 74.85; where in its role paves the way to target 76.70 - 77.00. The expected bullish direction for today requires 73.20 to remain intact.

The trading range for today is among the key support at 71.80 and the key resistance at 77.00.

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 buying oil from 73.85 targeting 74.85 and stop loss below 73.20, might be appropriate.

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