Morning Report

If we do not witness a four hour closing below 87.75, crude will be unable to insure the downside direction continuing since its descend yesterday after touching 89.05 sharply and touching the mentioned support level, which is expected to be for the descending triangle pattern, if it is not insured. Today, in case we do not witness a four hour closing below 89.05 we will remain neutral, but in case the expected closing prevails we can expect to witness a bearish intraday direction, supported by Stochastic in overbought areas.

The trading range for today is among the key support around 85.70 and the key resistance around 90.50.

The short term trend is expected sideways as long as trading is between 90.50 and 70.00 with weekly closings.

Previous Report

Weekly Report

RecommendationBased on the charts and explanations above our opinion is selling crude around 89.05 targeting 87.35 and stop loss above 90.50, might be appropriate.