Crude stabilized trading below the previously breached 61.8% Fibonacci correction that has currently turned into resistance at 75.80, thus pointing to chances of resuming the bearish direction that has started after breaching support for the bullish channel shown below. From here, we can expect a bearish intraday direction that starts its targets at 74.20, which we must observe crude’s behavior when it reaches the targets since breaching it paves the way towards achieving more bearish movement that targets 71.40. Meanwhile, if crude stabilizes above 75.80 it holds the keys to causing the expected bearish direction to fail today or at least be postponed.
The trading range for today is among the key support around 72.75 and the key resistance around 77.20.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