Crude succeeded in achieving yesterday's suggested bearish direction, where it was able to breach pivotal support 75.20 as trading currently stabilizes at support for the bullish short term channel at 74.60. Meanwhile, achieving stability below the mentioned pivotal support will activate the previously suggested bearish technical pattern; therefore we expect a bearish overall direction today that will initially start when 74.60 is breached, heading towards $72.00 per barrel mainly. Keep in mind that this scenario requires trading to stabilize below 75.75.
The trading range for today is among the key support around 72.00 and the key resistance around 76.65.
The short term trend is to the downside as far as 84.00 remains intact with targets around 61.60.
Previous Report Weekly ReportSupport74.6073.7073.2072.4572.00Resistance75.2075.7576.6577.2077.70RecommendationBased on the charts and explanations above our opinion is selling crude with the breach of 74.60 targeting 73.20 and stop loss above 75.20, might be appropriate.