Oil declined influenced by the bearish pattern that appeared clearly after the negative closing below 57.45 which accelerated the attack of the neckline several times. Indeed the intraday direction is unclear as the momentum indicators suggest some kind of upside action. Therefore we should await for the coming four-hour candlestick closing as if it succeeds to close above the mentioned level the price might be able to breach 58.15- the previous support turned into resistance- ;thus may accelerate the movements towards 62.50 but a close below 56.40 may lead us towards 54.70 and followed by 50.80.
The trading range for today is among the key support at 50.80 and the key resistance at 60.00.
The general trend is to the upside as far as 47.20 remains intact with targets at $62.50 a barrel.
Support: 56.40, 55.90, 54.70, 54.00, 53.70
Resistance: 57.05, 57.75, 58.15, 58.85, 59.75
Recommendation: According to our analysis, sell the contract cautiously with the closing of the next four-hour candlestick below 56.40 with targets at 54.70 and stop loss with a four-hour close above 57.75.
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