Morning Report

Crude continues to fluctuate around the pivotal support 81.75, which leads to forming a bearish technical pattern precisely in thesecondary image; the neckline for it is at 81.75. The weak bullish momentum for crude makes us expect a bearish direction on the short term trend; requiring first the breach of mentioned support to pave the way to target 80.45 - 67.8% Fibonacci correction for the last bullish wave -. The breach of 82.55 will weaken chances of achieving this descend and cancel out the need to currently bearishly correct.

The trading range for today is among the key support at 80.45 and the key resistance at 83.05.

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 with the breach of 81.75 targeting 80.45 and stop loss above 82.55, might be appropriate.