Crude descended yesterday due to the negative effect of stochastic as it continues to trade around the ascending channel's support level, which organizes current trading around 88.35. The MA 50 continues supporting the bullish short term direction, while stochastic is gradually ridding of negativity appearing on it. Henceforth, we expect to witness a bullish intraday trend as initial targets start at 90.50, but keep I mind the importance of building a base above 88.35 in order to maintain chances of resuming these expectations. The breach of 89.40 will make crude's attempt to ascend easier.
The trading range for today is among the key support around 87.25 and the key resistance around 91.50.
The short term trend is expected sideways as long as trading is between 90.50 and 70.00 with weekly closings.
|Recommendation||Based on the charts and explanations above our opinion is buying crude around 60.00 targeting 62.00 and stop loss below 59.00, might be appropriate.|