Crude inclined as expected yesterday and currently consolidating above 80.00 areas. We have mixed signals on the chart above, where crude breached the 76.4% Fibonacci correction and approaching the resistance for the ascending channel structuring the current wave, while momentum indicators are trading within overbought areas. Those mixed signals compel us to observe today’s closing around 80.70 areas, where closing above it confirms further bullishness over short term basis opposed to closing below it which keeps trading ideal within the ascending channel taking crude lower again towards its main support around 75.40.
The trading range for today is among the major support at 78.25 and the major resistance at 83.00.The general trend is to the downside as far as 84.00 remains intact with targets at 61.60.
By: Yasir Mubarak
Senior Technical Analyst