Midday Report

Crude stabilized trading above the breached neckline for the bullish technical pattern, shown in yesterday's reports, with strong resistance at 74.90 - 61.8% Fibonacci correction meeting with the previously breached bullish trend that had turned into resistance -. Momentum indicators are showing negative signs that are impeding the bullish direction from continuing; however, we expect an overall bullish intraday direction that requires that breach of 74.90 and towards 75.90 initially. The breach of 73.85 will weaken chances of achieving these expectations.

The trading range for today is among the key support at 72.40 and the key resistance at 77.70.

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 with the breach of 74.90 targeting 75.90 and stop loss below 75.90, might be appropriate.