Crude continues trading below support for the previously breached bullish channel, although the MA 50 maintains its stance as a support barrier that impedes achieving more bearish movement. More specifically, the chart is showing that the rising wedge pattern has been achieved and its support has been breached; pointing to more expected bearishness for the upcoming period. This points to move bearish activity in the upcoming period, where some fluctuation could be witness alongside a slant towards the upside to retest support for the breached pattern that has currently turned into resistance at 74.95, before heading towards the bearish trend for this week that will start its targets around 71.55. Keep in mind that this descend requires the daily closing below 76.00 to maintain chances of achieving expectations.
The trading range for today is among the key support around 71.55 and the key resistance around 76.85.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
[email protected]
www.ecpulse.com