Crude stabilized around the awaited retest level at 75.40, in an attempt to breach it but was not able to build a base below it and thereby maintaining chances of yesterday’s scenario prevailing intact, supported by the bullish trend appearing through momentum indicators. However, in return we find that there is negative pressure on the pair via SMA 50. We expect a bullish trend today that will start with crude stabilizing above 75.40 and building a base above SMA 50, in an attempt to start a bullish wave that targets initially 78.50. Note that if crude fails targets above 75.40 it will lead to a direct descend towards the vital 74.05 for the crude’s short term trend.
The trading range for today is among the key support around 74.05 and the key resistance around 77.50.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
yasir.mubarak@ecpulse.com
www.ecpulse.com