After achieving primary targets for the bearish pattern in our previous reports, crude rebounded due to support from MA 200 in an attempt to return the previously breached ascending channel. The negative signs the momentum indicators are showing could force crude to attempt some minor bearish correction and fluctuate between 82.20 and 81.50, before resuming the expected bullish direction over a short term trend that mainly targets 82.55 - return gate for the ascending channel - then head towards $83.50 per barrel. The breach of main primary correction at 81.00 will weaken chances of achieving this suggested scenario.
The trading range for today is among the key support at 80.30 and the key resistance at 84.00.
The general trend is to the upside as far as 65.60 remains intact with targets at 85.00.
Previous Report Weekly Report
|Recommendation||Based on the charts and explanations above our opinion is buying oil from 81.50 targeting 82.55 and stop loss below 81.00, might be appropriate.|