The medium term upside trend for crude is currently being tested as oil is pressuring the key support for the channel at 67.60 to the downside. As seen in the above image, we see bearish signs from momentum indicaotrs in addition to the possible formation of a bearish technical pattern with a neckline at 67.00. All these signs make us believe the pair is to breach the key support to extend the decline on the short term, initially targeting 65.50 and then complete the technical target near 59.00. The expected decline remains a speculation and depeneds on a daily close below 67.60 where as far as trading is above this level, the trend will remain to the upside.
The trading range for today is among the key support at 64.75 and the key resistance at 74.85.
The general trend is to the upside as far as 47.20 remains intact with targets at 85.00.
|Recommendation||Based on the charts and explanations above our opinion is selling oil from 68.80 To 67.60 and stop loss below 69.55, might be appropriate.|