Morning Report

Crude is gradually nearing main resistance 74.70 - meeting point between the descending channel and MA 100 - accompanied by clear negative signs that are appearing through momentum indicators. These factors make us expect a bearish intraday trend that mainly targets 72.55 then 70.60. The side image show how the bearish technical pattern on the line chart supports expectations, which requires it to completely breach the neckline at 73.65. Expectations for a bearish direction require the daily close to remain below 75.30.

The trading range for today is among the key support at 71.80 and the key resistance at 77.20.

The general trend is to the upside as far as 47.20 remains intact with targets at 85.00.

Previous Report Weekly Report

Support73.6573.0072.6071.8070.60
Resistance74.7075.3076.2577.2077.80
RecommendationBased on the charts and explanations above our opinion is selling oil from 74.70 targeting 73.00 and stop loss above 75.30, might be appropriate.