Crude headed yesterday towards the expected scenario in our midday report yesterday, where it stabilized below the breached pivotal support at 83.70. Stability below the MA 50 as well as below support for the bullish short term direction are factors that make us expect a bearish intraday trend; targeting 82.55 then 38.2% Fibonacci correction at 80.35. Keep in mind that these expectations require stability below 84.40 to prevail.
The trading range for today is among the key support at 80.35 and the key resistance at 85.55.
The short term trend is expected to the upside as far as 65.60 remains intact with targets at 88.00.
Previous Week Weekly ReportSupport82.9082.5582.1081.4080.35Resistance83.7084.4085.1585.5585.90RecommendationBased on the charts and explanations above our opinion is selling oil from 83.70 targeting 82.55 and stop loss above 84.40, might be appropriate.