Crude managed to achieve a strong breach of support for the sideway range 78.50 surpassing the awaited key target at 77.35, breaching support for the short term bullish channel and stabilized below it. Momentum indicators are showing bullish signs that are pushing to retestthe brokensupport that has turned into resistance at 77.75 before achieving more expected bearish intraday movement; targets start at 76.15 then 75.60. This scenario requires the four hour closing to stabilize below 77.75.
The trading range for today is among the key support around 75.05 and the key resistance around 79.35.
The short term trend is to the downside as far as 84.00 remains intact with targets around 61.60.
Weekly ReportSupport77.3577.0076.1575.6075.15Resistance77.7578.5079.3580.1081.00RecommendationBased on the charts and explanations above our opinion is selling crude around 77.75 targeting 76.15 and stop loss above 78.50, might be appropriate.