Oil corrected slightly to the upside before reversing to the downside to stabilizearound68.80; nearing key support level for the ascending channel. We notice that trading is within a minor bearish channel, where we expect crude is to decline to breach the areas between 67.80 and the more vital level at67.00,to open theway to change the medium term trend to the downside, and thus head towards 59.00 dollar per barrel. The first targets for the short term intraday decline for today is around 65.60. It is vital to mention that the expected downside movementrequires a daily close below level 67.80.
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 67.80 To 66.25 and stop loss above 68.80, might be appropriate.|