Morning Report

Crude's trading has been wedged since last Monday within the sideway range between support 86.25 and resistance 87.05, while noting momentum indicators entering overbought areas that may cause more sideway fluctuations. We expect more bullish movement today that will start with the breach of resistance for the current range, which will pave the way towards $88.00 then 89.50 per barrel. Keep in mind that the breach of 86.25 will weaken chances of achieving this awaited bullishness.

The trading range for today is among the key support at 85.60 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 buying oil with the breach of 87.05 targeting 88.00 and stop loss below 86.25, might be appropriate.