Crude oil acquired the first awaited target yesterday around 75.45 and resumed to the downside nearing the major support at 73.65 affected by the continued overbought signals on Stochastic. We expect the mentioned support to hold crude from further decline and then reverse to the upside making us expect an intraday upside move for today targeting again areas of 75.45. Areas of 73.40 must hold intact for our expectations to prevail as breaching this level will activate the downside reversal signal on Stochastic.
The trading range for today is among the major support at 72.65 and the major resistance at 76.50.
The general trend is to the upside as far as 47.20 is intact with targets at 85.00.
|Recommendation||Based on the charts and explanations above our opinion is buying crude from 73.65 targeting 75.45 and stop loss below 72.65 might be appropriate|