Crude continued its negative pressure to breach 76.4% Fibonacci at 74.15 to close last week below it, thus showing strong signs of the bearish trend continuing although positive signs are clearly appearing through momentum indicators and cause crude to move to the upside to retest the previously breached support at 75.80.
In overall, we expect a bearish direction this week, but at the same time we require observing today’s closing for 74.15 to insure if crude will retest the mentioned breached support and continue the direct bearish direction. We point out that the daily closing is below 75.80, which is vital to resume chances of an expected bearish trend this week as its targets will start at 71.40.The trading range for today is among the key support around 70.00 and the key resistance around 76.55.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