Morning Report

Crude continued its negative pressure to fluctuate around the MA 50 in an attempt to return within the previously breached descending channel. The positive signs coming from momentum indicators in addition to the bullish technical pattern that is being formed is shown above, where chances of a previously expected bullish trend will remain intact. Thus, a bullish intraday trend is expected to first target the suggested neckline at 86.35 then $87.00 per barrel. It is vital that 84.00 remain intact to achieve the suggested scenario.

The trading range for today is among the key support at 84.00 and the key resistance at 87.05.

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 84.45 targeting 86.35 and stop loss below 83.40, might be appropriate.