Crude Oil May Start a Bearish Correction

US West Texas Crude Oil futures prices achieved our ascending targets, touching 81.80, recording the highest level of 82.18.

Technically, we notice the clear negative crossover signs on Stochastic and the beginning of its gradual loss of bullish momentum, in conjunction with the negative signals from the RSI.

From here, and with daily trading remaining below the 81.30 resistance level, this increases the possibility that we will witness a bearish corrective bias in the coming hours, targeting retesting 79.55 and 78.65 with initial stations that may extend its targets later to visit 77.40.

Trading above the 81.50/81.30 resistance level will immediately stop the mentioned bearish corrective bias, and oil will recover with an initial target starting at 83.00.

S1: 79.55	R1: 81.30
S2: 78.65	R2: 83.00
S3: 77.35	R3: 83.90