Morning Report

Crude succeeded in breaching pivotal support according to our suggested scenario in yesterday's report, where it surpassed the first target at 80.70 - 23.6% Fibonacci correction - heading to attempt to try to reach the upcoming correction level at 78.70 as the upcoming main target for the current bearish wave, while we see that the expected overall direction for today is bearish, but could force the pair to attempt some bullish correction due to positive signs appearing through momentum indicators, in addition to retesting breach support at 80.70. It is essential that 81.35 remain intact for the expected bearish direction to prevail.

The trading range for today is among the key support at 78.70 and the key resistance at 82.30.

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 80.70 targeting 79.45 and stop loss above 81.35, might be appropriate.