Morning Report

Crude succeeded in achieving the awaited main bullish targets for our daily and weekly reports at 75.60 continuing to trade within the descending short term channel. Momentum indicators are showing positive signs that might lead to achieving minor bullish correction that will reach 77.00; followed by the over bearish direction resuming and targeting mainly 75.45 then 74.50. Expectations of a bearish direction, requires the four hours to close below 77.00.

The trading range for today is among the key support at 74.50 and the key resistance at 78.50.

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 77.00 targeting 75.45 and stop loss above 78.10, might be appropriate.