Oil extended its rise yesterday noting that trading stabilized below the subsidiary channel’s support levels that were previously breached and shifted to resistance, at 75.20. Overbought signs are appearing on the momentum indicators which adds to the strength of those resistance levels, therefore, we expect a bearish intraday direction, targeting 72.45 that requires a clear breached for the subsidiary support near 74.15, but in order to extend the bearish trend, a daily closing below 75.20 is required also.
The trading range for today is among the major support at 72.45 and the major resistance at 76.20The general trend is to the downside as far as 84.00 remains intact with targets at 61.60.
By: Yasir Mubarak
Senior Technical Analyst
[email protected]
www.ecpulse.com