Crude sharply dropped due to effects from the bearish technical pattern shown above, but support for the main ascending channel halted this fall where the main bullish wave remains intact, since this descend is considered to be natural trading within the mentioned ascending channel. Momentum indicators are showingpositive signs thatsupport the bullish direction, but we recommend observing trading that is wedged between 61.8% Fibonacci correction and 76.4% (78.35 and 76.65 in a row). The breach of 78.35 will insure that the bullish wave will prevail, whereas the breach of 76.25 will add negative pressure that may reverse the medium term direction to the downside.
The trading range for today is among the key support at 75.25 and the key resistance at 80.45.
The short term trend is expected to the upside as far as 65.60 remains intact with targets at 90.00.
Previous Report Weekly ReportSupport76.2575.7575.2574.2573.65Resistance77.7578.3579.0079.4080.00RecommendationBased on the charts and explanations above our opinion is selling oil from 80.35 targeting 78.35 and stop loss above 81.25, might be appropriate.