Morning Report

Crude attempted to bearishly correct, due to the pivotal resistance's strength (78.15), where the price will currently complete forming the right shoulder for the inverse head & shoulder pattern, shown in the above image. the positive signs appearing through the stochastic and therefore we see that the expected direction for today could be bullish over an intraday basis, which could build a base on 76.45 and attempt to head towards breaching the neckline for the bullish pattern at 77.80; therefore paving the way to target mainly 79.50. It is vital that 75.85 remain intact to achieve these expectations.

The trading range for today is among the key support at 75.10 and the key resistance at 79.50.

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 buying oil from 76.45 targeting 77.80 and stop loss below 75.85, might be appropriate.