Morning Report

Crude managed to achieve the awaited descend since yesterday, where support levels are around 77.00, where crude maintains gaining. The current channel that organizes bearish trades is witnessing crude close to touching its resistance at 78.50, where we then expect a reversal in trades to the downside to achieve the expected bearish intraday direction; targeting first 77.00 and then $76.00 per barrel. Keep in mind the importance of 79.65 to achieve this expected descend.

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 78.50 targeting 77.00 and stop loss above 79.65, might be appropriate.