Morning Report

Crude achieved a descend where it breached through it support for the ascending short term channel, while halting at horizontal pivotal support at 81.75; forming the beginning of the bearish correction for the last ascending wave, where we see that the possible scenario for the bearish technical pattern helps in the breach of the mentioned support. From here, we see that the expected direction for today is overall bearish and mainly heading towards the first correction level at 80.70, where the pair should be observed to determine the upcoming intraday direction. Keep in mind that the breach of 82.70 will return the bullish direction to the previous pace, which therefore cancels out the expected bearish correction.

The trading range for today is among the key support at 80.00 and the key resistance at 84.00.

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 with the breach of 81.75 targeting 80.70 and stop loss above 82.70, might be appropriate.