Morning Report

Crude faced strong resistance at resistance for the descending short term channel at 75.55, currently with trading wedged between both ends of the rising wedge, shown in the image above, therefore postponing the determining point of insuring the expected bullish short term direction continuing in our previous reports. We still expect a bullish intraday to prevail; requiring the breach of 75.55. Keep in mind that the breach of 73.80 will lead to a direct descend that may reach 72.40. We must observe crude at pivotal levels to insure the upcoming short term direction.

The trading range for today is among the key support at 72.40 and the key resistance at 77.80.

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 75.55 targeting 77.20 and stop loss below 74.40, might be appropriate.