Crude managed to achieve a sharp descend since yesterday to breach main support levels, starting with the support of the bullish short term wave and followed the retest level for the previously breached pattern at 78.00. There seems to be some signs of a bearish technical pattern in the side image, in addition to negative signs appearing through momentum indicators. All these signs as well a stabilizing below MA 50 could all be factors that make us expect a possible bearish intraday trend that requires a new breach of 78.00, then head towards 77.25 followed by 76.50. Keep in mind that breaching 79.45 could make the suggested bearish scenario fail.
The trading range for today is among the key support at 76.05 and the key resistance at 80.75.
The general trend is to the upside as far as 65.60 remains intact with targets at 85.00.
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|Recommendation||Based on the charts and explanations above our opinion is selling oil with the breach of 78.00 targeting 76.50 and stop loss above 78.85, might be appropriate.|