Crude has currently moved into a new contract for May, where support and resistance levels have slightly but expectations are still as is. We see that crude's price is forming several tops, where all are below 83.55 as well as the stochastic is showing overbought signs that make us hold onto our previous expectations pointing to a possible bearish direction. The breach of 80.15 and stabilizing below it might cause a sharp descend that may take us towards 38.2% correction at 78.15.
The trading range for today is among the key support at 78.85 and the key resistance at 83.55.
The short term trend is expected 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 from 81.95 targeting 78.85 and stop loss above 83.55, might be appropriate.|