Morning Report

Crude strongly pushed to the upside strongly touching resistance for the main ascending channel currently at 79.15, where it starts to descend that is considered to be correction due to negative signs that are appearing on momentum indicators. We expect that, the correction will extend and breach support 77.65 - previous brokenresistance level- heading towards 76.50 as the first main target for its correction as normal trading within the mentioned ascending channel. From here, we expect a bearish intraday direction where crude needs to rid of negative momentum before resuming the bullish short term wave. Keep in mind that the breach of 79.15 will push crude to ascend without the need to achieve the awaited bearish correction.

The trading range for today is among the key support at 75.70 and the key resistance at 79.90.

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

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RecommendationBased on the charts and explanations above our opinion is selling oil with a breakoutout below 77.65 targeting 76.50 and stop loss above 78.60, might be appropriate.