Crude pushed strongly to the upside but was not able to stabilize above 78.00 for long, where it returned to near support for the ascending channel that organizes current trading, due to the negative ongoing effect that keeps appearing through momentum indicators. We expect a base to be built on the channel's support at 76.10, followed by a bullish rebound making crude resume the bullish intraday direction; targets start at $77.25 then 78.00 per barrel. Keep in mind that the breach of 75.75 could cause more bearish movement visiting 74.50 levels once again.
The trading range for today is among the key support around 74.50 and the key resistance around 79.50.
The short term trend is to the downside as far as 79.20 remains intact with targets around 61.60.
Previous Report Weekly ReportSupport76.1075.7575.0574.5073.70Resistance77.2578.0078.5079.0079.50RecommendationBased on the charts and explanations above our opinion is buying crude around 76.10 targeting 77.25 and stop loss below 75.05, might be appropriate.