Crude is trading around very critical levels that can pinpoint the upcoming overall direction! Trading yesterday settled closely above 108.70 which we mentioned yesterday that failure to stabilize above with daily closings will negate the upside move; also trading is hovering around the main support for the ascending channel. Therefore, intraday stability above 107.65 keeps the upside potential intact while breaching those areas will extend the downside move for today. In short, the intraday trend solely depends on areas of 107.65.
The trading range for today is among the major support at 104.30 and the major resistance at 112.10.
The short term trend is to the upside with steady daily closing above 104.00 targeting 116.75.
Weekly ReportSupport108.20107.65107.10106.55106.05Resistance108.70109.35109.65110.20110.65RecommendationBased on the charts and explanations above our opinion is buying crude around 108.20 targeting 111.40 and stop loss below 107.10 might be appropriate – yet if the stop loss was reached we recommend selling crude around 107.10 targeting 105.20 and stop loss with daily closing above 108.70 might be appropriate -