Crude continued its bullish trend yesterday stabilizing above SMA 50 affected by the minor bullish technical pattern that has formed at 74.40. Signs of a larger bullish pattern appear over four hour chart, where its neckline is at 38.2% Fibonacci for the bearish wave shown in the image above; thus, making us expect trading to continue within the current bullish channel. We expect a bullish intraday direction that will start with the breach of 75.40 that will pave the way towards 77.00 mainly. Momentum indicators are giving off negative signs and therefore we need to keep an eye on fluctuation to achieve some bearish movement, while pointing out the importance of the four hour closing stabilizing above 74.00 to maintain chances of resuming expectations.
The trading range for today is among the key support around 72.70 and the key resistance around 77.00.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