Morning Report

Crude succeeded in achieving yesterday's suggested scenario flawlessly and stabilize around the awaited target at 86.20. The horizontal resistance at 86.35 is forming a sensitive resistance in front of crude, while inching closer to becoming the neckline for the technical pattern amid formation. The negative momentum could force crude into a bearish correction, but we expect a bullish overall trend today that depends on two major factors; first a clear breach for 86.35 and second building a base above 84.85. The awaited technical targets are presently around 87.05 then 88.70.

The trading range for today is among the key support at 84.85 and the key resistance at 88.70.

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 from 85.45 targeting 87.05 and stop loss below 84.85, might be appropriate.