Morning Report

Yesterday's resistance levels was shown at 78.65, remaining strong against crude's attempts to ascend and start a bearish reversal according to expectations, accompanied by negative signs that have started to appear through the stochastic. These expectations make us expect a possible bearish intraday direction that initially targets 77.00 and then $76.00 per barrel. Keep in mind that for these expectations to prevail the four hour close must remain below 78.65.

The trading range for today is among the key support at 76.00 and the key resistance at 80.50.

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 78.65 targeting 77.00 and stop loss above 79.60, might be appropriate.