Morning Report

Crude ideally is trading according to suggested midday scenario yesterday, but it did not succeed till now in its attempts to return within the previously breached ascending channel, due to negative effects coming from momentum indicators. We expect yesterday's suggested scenario to return through touching 81.75 once again, followed by a bullish rebound where the pair achieves through it the bullish direction over the short term trend; targeting mainly returning to the ascending channel through resistance 82.90 then paves the way to achieve coming targets at $84.00 per barrel. The breach of 81.25 could cause a mixed situation for the expected bullish intraday direction.

The trading range for today is among the key support at 81.25 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.

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RecommendationBased on the charts and explanations above our opinion is buying oil from 81.70 targeting 82.90 and stop loss below 81.00, might be appropriate.