Crude succeeded in breaching the awaited support for the ascending channel pointed out in our reports yesterday, where the bearish trend has halted at 50% Fibonacci correction for the bullish short term wave that has stabilized within the mentioned bullish channel.
This stop is accompanied by oversold signs appearing through momentum indicators, which is expected to push crude to retest breached pivotal support levels between 78.55 – 38.2% Fibonacci correction – 79.10 – where support for the bullish channel has currently turned into resistance -, following the retest of this bearish reversal to resume the expected bearish intraday overall direction; upcoming targets are around 75.80 – 75.65. Keep in mind that for the expected bearish direction to prevail the daily closing must remain below 79.10.The trading range for today is among the key support around 75.65 and the key resistance around 79.10.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