Crude yesterday descended towards the awaited levels around 71.40 rebounding to the upside to form a bearish technical wedge that has breached its resistance level.
This resistance is currently turning into support at 71.10. This technical formation offers chances of resuming some expected bullish intraday movement, where targets start at 72.50 that extend to reach 73.45; note that will remain bearish on the short term. Momentum indicators are showing a crossover in direction, which could cause mixed fluctuation until the intraday direction stabilizes. We point out that the breach of 71.10 and building a base above it will push crude to continue the bearish direction and cancel out the affect of the mentioned bearish wedge.The trading range for today is among the key support around 69.50 and the key resistance around 73.45.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