Midday update for Crude Oil 27/08/2015

Crude oil price traded with clear positivity this morning to begin a process to breach the main bearish channel’s resistance level, achieving four hours close above this level, which provides initial signals for attempts to stop the negative pressure that controls the trading recently and turn to the upside.

On the other hand, we notice that the EMA50 represents resistance obstacle against the positive attempts, accompanied by stochastic enter to the overbought levels, which keeps the chances valid for resuming the overall bearish trend.

In general, we will keep our bearish trend expectations unless witnessing a daily close above 40.65, and the price needs to break 39.95 then 39.00 level to refresh the main negative scenario, which its next main target located at 35.13.

Expected trading range for today is between 37.50 support and 41.00 resistance.

Expected trend for today: Bearish