Morning Report

Crude was able to breach support for the minor bullish channel paving the way towards achieving a bearish trend that targets returning within the descending channel that has previously halted to bullishly correction, as shown in our reports yesterday. The positive momentum appearing on the four hour chart pushed for some bullish correction, before heading towards achieving more bearish intraday movement that mainly targets revisiting the bearish channel at 70.40. Keep in mind that the expected descend requires trading to remain below resistance between 73.60 - 73.75.

The trading range for today is among the key support around 70.40 and the key resistance around 73.75.

The short term trend is to the downside as far as 84.00 remains intact with targets around 61.60.

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RecommendationBased on the charts and explanations above our opinion is selling crude around 73.10 targeting 71.60 and stop loss above 73.95, might be appropriate.