Crude continues its descend last week halting at $75.00 per barrel, where it has currently rebounded to the upside due to positive signs on momentum indicators appearing clearly through the four hour chart.
Crude is currently facing pivotal resistance at 75.80, which represents the previously breached 61.8% Fibonacci correction, which holds the keys to determining this week’s direction since breaching it and stabilizing above it will lead to an ascend towards 77.20 and extend to 78.35. Meanwhile, its stability will lead to crude continuing the bearish trend that it has started after breaching support for the bullish channel at 79.00 approximately. From here, we recommend awaiting for future reports for more assuring signs for the future direction.The trading range for today is among the key support around 71.40 and the key resistance around 78.50.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