Crude’s trading has stabilized below the pivotal level 81.75 as it points to more bearish movement that is still suggested to retest the initial neckline at 79.35, while trading continues in a natural manner within the bullish channel shown below. Momentum indicators are currently neutral, where we might witness some fluctuation until crude obtains the required bearish momentum enough to start a bearish intraday direction for today. Keep in mind that stability above 81.75 will weaken chances of resuming the suggested bearish trend today.
The trading range for today is among the key support around 78.60 and the key resistance around 82.75.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