Crude breached resistance for resistance for the bearish channel yesterday, where we notice that the bullish wave is wedged within the rising wedge that has breached its support, where it holds the ability help crude return within the bearish channel once again. Crude is currently retesting breached resistance that is supported by the MA 50, where stochastic is giving off negativity that makes us expect a bearish intraday direction; requiring two main factors to be achieved, once is a clear breach of 72.70 and the second is stability below 73.90.
The trading range for today is among the key support around 69.50 and the key resistance around 74.15.
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 72.70 targeting 71.00 and stop loss above 73.90, might be appropriate.|