Morning Report

Crude touched resistance for the minor ascending channel once again, accompanied by momentum indicators clearly entering overbought areas. These factors make us expect some bearish correction towards 23.6% Fibonacci correction that meets with support for the mentioned minor channel, followed by a bullish rebound to resume the bullish short term trend. Keep in mind that the breach of 87.00 will pave the way to resume the bullish direction without the need for a bearish correction.

The trading range for today is among the key support at 84.00 and the key resistance at 89.50.

The short term trend is expected to the upside as far as 65.60 remains intact with targets at 88.00.

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RecommendationBased on the charts and explanations above our opinion is selling oil with the breach of 86.25 targeting 85.10 and stop loss above 87.00, might be appropriate.