Crude is finding strong support around 81.55 and thereby this support will form the neckline for the bearish technical pattern shown in the image above, alongside clear overbought signs appearing through moment um indicators. We expect a bearish intraday trend that will start with a clear breach of the mentioned neckline heading towards technical targets that start at 80.70 then 79.90. The breach of 82.55 and building a base above it will weaken chances of resuming today's expectations.
The trading range for today is among the key support around 79.90 and the key resistance around 84.00.
The short term trend is to the downside as far as 84.00 remains intact with targets around 61.60.
|Recommendation||Based on the charts and explanations above our opinion is selling crude with the breach of 81.55 targeting 79.90 and stop loss above 82.60, might be appropriate.|