Morning Report

Crude continued to gradually ascend from the resistance level for the ascending channel that represents the bullish short term direction. Momentum indicators are showingclear overbought signs that might push for some bearish correction, where we expect it to not surpass 80.80 and then return to achieve the expected bullish intraday; targeting initially 83.15. The expected bullish intraday direction requires 80.80, at the same time the bullish short term wave will prevail if 79.60 remains intact.

The trading range for today is among the key support at 79.60 and the key resistance at 84.15.

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 80.80 targeting 82.00 and stop loss below 79.90, might be appropriate.