Crude continues to push upwards while forming a bullish technical pattern this time after halting at the top level recorded yesterday at 75.35, which represents the neckline for the suggested new bullish technical pattern.
There seems to be clear o verbought signs appearing on momentum indicators, which could force crude to retest 73.55 which meet with the 23.6% Fibonacci correction, before continuing the bullish trend over an intraday basis; targeting the attack of the mentioned neckline that paves the way to achieve more upside movement which may reach 77.15 initially.
Keep in mind that the breach of 73.55 will pave the way to achieve more bearish correction that in its own role will weaken chances of completing the suggested bullish scenario.
The trading range for today is among the key support at 72.25 and the key resistance at 77.15.The short term trend is to the downside as far as 79.20 remains intact with targets at 61.60.
By: Yasir Mubarak
Main Technical Analyst