Crude is heading to the downside according to the expected scenario in the midday report yesterday, surpassing expected targets to enter once again within the previously broken bearish correction channel and near horizontal support that is at 81.25. Momentum indicators are entering oversold areas, which could therefore push for some minor bullish correction that may touch 83.05 before resuming the expected bearish intraday direction that will start its targets at 81.25. Keep in mind that the breach of 83.85 will bring back the bullish trend's pace one again.
The trading range for today is among the key support at 80.35 and the key resistance at 83.85.
The short term trend is expected to the upside as far as 65.60 remains intact with targets at 90.00.
Previous Report Weekly ReportSupport81.7581.2580.3579.5079.10Resistance83.0583.8584.4585.1085.85RecommendationBased on the charts and explanations above our opinion is selling oil from 83.05 targeting 81.25 and stop loss above 83.85, might be appropriate.