Crude succeeded in achieving yesterday’s suggested bearish direction flawlessly, touching the awaited targets between 75.80 – 75.65 as it’s currently starts a bullish correction due to the clear oversold signs appearing through momentum indicators.
The pair is expected to ascend today to touch 77.15 – 23.6% Fibonacci – extending further to reach 38.2% Fibonacci at 78.40. in overall, we witness that this bullish correction for today will be followed by a bearish rebound resuming the bearish short term trend, keeping in mind that the breach of 78.40 will lead to more bullish correction that may reach the bearish short term direction. Note that the breach of 78.40 will lead to more bullish correction that may reach 80.00; whereas the breach of 75.65 will pave the way towards resuming the bearish direction without the need of the suggested bullish correction.The trading range for today is among the key support around 74.15 and the key resistance around 78.40.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