Morning Report

Accompanying yesterday's expectations, crude sharply fell where today it managed to build a base below 23.6% correction at 79.90; therefore making us expect more bearish direction today and thereby keeping this possibility intact, while trading remains below 80.75 in the four hour closing. We see that the stochastic showing some bullish slant but at the same time we still expect a bearish direction for the remainder of today's trading; completing the target of breaching main support for the bullish trend.

The trading range for today is among the key support at 78.00 and the key resistance at 81.80.

The general trend is to the upside as far as 65.60 remains intact with targets at 85.00.

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RecommendationBased on the charts and explanations above our opinion is selling oil from 80.05 targeting 78.85 and stop loss above 81.10, might be appropriate.