Crude leaped towards the awaited target yesterday at 79.50, but managed to bearishly reverse once again towards pivotal support between 77.20 - 77.05. The image above shows that crude was not able to achieve stability above support for the previously breached ascending short term channel; thus making us expect a bearish intraday direction that will start with the breach of mentioned support levels and initially head towards retesting the previously breached neckline at 75.75, before making sure of the short term trend more precisely. The MA 50 will add strength to current support levels and thereby warning of a chance of the bearish trend to speed up if crude does not succeed at breaching it. Keep in mind that the breach of 78.80 will help crude regain its bullish direction once again.
The trading range for today is among the key support around 75.75 and the key resistance around 79.50.
The short term trend is to the downside as far as 84.00 remains intact with targets around 61.60.
Previous Report Weekly ReportSupport77.2076.8075.7575.0574.55Resistance77.7078.1578.8079.5080.00RecommendationBased on the charts and explanations above our opinion is selling crude with the breach of 77.05 targeting 75.75 and stop loss above 77.70, might be appropriate.