Morning Report

Crude is gradually nearing pivotal support 78.70 - 38.2% Fibonacci correction level, in addition to the breach resistance level that has turned into support, shown in the image above. Accompanying the mentioned support level is oversold signs appearing through momentum indicators, which make us expect a bullish direction for today; targeting 80.70 mainly, while keeping in mind that the breach of 78.70and achieving the four hours below it will weaken chances of achieving the awaited ascend that may lead to sudden descend towards $77.00 per barrel.

The trading range for today is among the key support at 77.00 and the key resistance at 81.80.

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 78.70 targeting 80.0 and stop loss below 77.80, might be appropriate.