Morning Report

Crude continues its negative pressure facing pivotal support at 87.70, where this level represents the meeting point for the ascending short term channel's medium support level, with the bearish intraday trend shown in the image above. We expect crude has a chance to resume more expected bearish intraday movement that will initially start with the breach of the mentioned support level, but keep in mind that the positivity of momentum indicators could impede this decline and cause a bullish slant, which is expected to touch 89.70 and in role represents the falling wedge's resistance level. This causes us to keep an eye on crude's movement when it reaches the target, since breaching this level could cause the suggested bearish trend scenario to fail.

The trading range for today is among the key support around 85.00 and the key resistance around 90.80.

The short term trend is expected towards the upside as long as trading is above 84.00 with targets at 99.00.

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RecommendationBased on the charts and explanations above our opinion is selling crude with the breach of 87.70 targeting 85.00 and stop loss above 89.10, might be appropriate.