Crude was able to achieve the initial awaited target at 74.20 and rebound to the upside sharply to retest the previously breached pivotal level at 75.80, accompanied by stochastic entering overbought areas. This makes usexpect to resume the bearish intraday direction, with additional support from the MA 50. The suggested technical targets start at 74.20 once again then 72.75. Keep in mind the importance of the daily closing stabilizing below 75.80 to maintain chances of achieving these expectations.
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