Morning Report

Crude managed to achieve the bearish technical scenario shown yesterday closely nearing the awaited target around 84.15, but the effect of the MA 50 is pushing crude once again to the upside, where we see that it settles with a bearish correction around 38.2% Fibonacci. The fluctuation since yesterday till this moment is showing a bullish technical pattern formation, where its neckline is around 84.05. This pattern makes us expect a bullish intraday direction, where its key targets are around 87.05. Keep in mind that the breach of 84.65 will lead to more bearish correction and make hopes of crude ascending today fail.

The trading range for today is among the key support at 84.65 and the key resistance at 88.00.

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 85.85 targeting 87.05 and stop loss below 84.90, might be appropriate.