Crude continues inclining due affects from the falling wedge shown yesterday, where it nears from resistance for the bearish channel around 73.30 after achieving some descend to retest resistance for the previously breached falling wedge. Momentum indicators are moving near overbought areas; therefore, we can expect a bearish direction over intraday basis according to the nature of trading within price channels, where suggested targets are around $71.00 per barrel initially. Keep in mind the importance of the daily closing remaining below 73.30 so chances of expectations will prevail.
The trading range for today is among the key support around 69.50 and the key resistance around 74.15.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