Morning Report

Crude succeeded in breaching pivotal resistance yesterday, specifically 75.70 to move to the upside within the ascending channel that organizes trading, which appears in the image above. Some bearish correction is expected to rid of negative signs that are appearing on momentum indicators, followed by resuming the expected bullish intraday; initially targeting 78.00 then 79.50. The new bullish short term wave requires the daily close to remain above 75.60.

The trading range for today is among the key support at 75.60 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 76.50 targeting 78.00 and stop loss below 75.60, might be appropriate.