Crude managed to build a base on support for the ascending channel, according to our suggested scenario yesterday, where it returned to move to the upside once again. According to trading rules within price channels, we expect a bullish intraday direction that requires the breach of minor resistance 79.60, which cancels out the possibility of completely forming a bearish technical pattern, where its neckline is at 78.00, shown in the image above. Meanwhile, bullish targets are at $80.75 then 82.00 per barrel, but as we pointed out, trading must remain above 78.00 to maintain chances of the bullish short term direction prevailing.
The trading range for today is among the key support at 77.25 and the key resistance at 82.00.
The general trend is to the upside as far as 47.20 remains intact with targets at 85.00.
|Recommendation||Based on the charts and explanations above our opinion is buying oil with the breach of 79.60 targeting 80.75 and stop loss below 78.65, might be appropriate.|