Crude managed to breach resistance for the descending channel that organized the bearish correction that seems to have halted between 23.6% and 38.2% Fibonacci. Signs of a bullish technical pattern is appearing where its neckline is at the top that had stopped crude from pushing forward yesterday at 85.60. This adds more assurance that the bearish correction has ended, but momentum indicators are showing signs that opposes this technical idea and may force crude to fluctuate and descend. We expect the main bullish direction to resume, but we recommend observing trading today by 86.05 - the gate that insures the return of the ascend - and support 84.75.
The trading range for today is among the key support at 82.90 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.
Previous Report Weekly ReportSupport84.7583.9582.9082.1581.75Resistance85.6086.0586.7587.0587.50RecommendationBased on the charts and explanations above our opinion is to avoid trading awaiting more confirmation signs for the pair’s direction, might be appropriate.