Morning Report

Crude trades stabilized to the side almost, after touching resistance levels for the ascending channel that is represents the bullish short term direction. A clear slant must be seen to achieve some minor bearish correction, due to the additional negative signs appearing through momentum indicators; in addition to the near completion of the bearish technical pattern, shown in the side image. All these factors make us expect a bearish intraday direction; targeting mainly 76.35, while taking into consideration the short term direction still remains bullish, and the expected bearish trend for the reasons mentioned above. The breach of 79.35 cancels out the need to bearishly correct and directly resume the bullish trend.

The trading range for today is among the key support at 76.35 and the key resistance at 81.00.

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 selling oil with the breach of 78.45 targeting 77.30 and stop loss above 79.35, might be appropriate.

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