Oil Report

Despite the negative signs which appearing on the momentum indicators as shown on the above four-hour chart, but oil is moving steadily towards $72.50 zones – target of the intraday basis-. The price is moving inside the minor channel and we see that a correctional movement is needed after reaching the expected resistance areas. This corrective wave probably will take us towards 70.35 before defining the next direction. The short term upside action can be damaged with a breakout below 65.90.

The trading range for today is among the key support at 65.75 and the key resistance at 73.00.

The general trend is to the upside as far as 47.20 remains intact with targets at $73.00 a barrel.

Support70.5569.5568.8568.2067.55
Resistance71.6072.0072.5073.0073.95
RecommendationAccording to our analysis, sell the contract below 72.50 with targets at 70.35 and stop loss with a four-hour closing above 73.00.