Morning Report

Crude was not to remain intact below minor correction 23.6% shown above, where crude pushed upwards breaching resistance for the descending intraday resistance channel; therefore leading to a rebound to the upside. The negative signs appearing on momentum indicators are forcing crude to attempt some bearish correction to retest yesterday's breached minor resistance that has currently turned into support at 81.50 before achieving more expected ascend for today; targeting mainly 83.45 then 84.30. The breach of 80.95 will make the expected bullish wave scenario fail.

The trading range for today is among the key support at 80.25 and the key resistance at 84.30.

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

RecommendationBased on the charts and explanations above our opinion is buying oil from 81.50 targeting 83.45 and stop loss below 80.95, might be appropriate.