Morning Report

Crude succeeded in achieving the bullish pattern's targets, shown in yesterday's reports, around 77.00; surpassing it to touch resistance levels for the ascending channel. Meanwhile, achieving the targets and negative signs appearing through momentum indicators make us expect some bearish corrections that might touch 76.30 at minimum estimates and might extend to 75.60. It is vital that we watch crude's price close today compared to 77.10, especially since it represents the support level for the general previously breached bullish direction that has retesting operations presently occurring to attempt to assure its return.

The trading range for today is among the key support at 74.50 and the key resistance at 80.45.

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 77.40 targeting 76.30 and stop loss above 78.20, might be appropriate.