Crude moved to the upside to touch 81.75, representing the previously breached support level that has currently turned into resistance. Stochastic has started to gradually lose its bullish momentum and crude will resume its bearish trend that it has started last Friday.
We require confirmation for the bearish trend and therefore we recommend observing the daily closing around 81.75, where stability below it will strengthen chances of achieving the bearish targets towards 79.35. Meanwhile, the breach of this level will pave the way towards the resistance for the current bullish channel around $84.00 per barrel.The trading range for today is among the key support around 79.35 and the key resistance around 83.00.The short term trend is to the downside as far as 84.00 remains intact with targets around 61.60.
By: Yasir Mubarak
Senior Technical Analyst