The harmonic technical pattern appearing on the four hour chart above, we see that crude is close to being perfect; thus, limiting crude's bearish corrections. We still need to be sure of the breach of 79.50, but at the same time a chance for the pattern to succeed and complete the pattern mentioned at levels between 82.35 and 82.80. We think that the bullish direction could affect the overall direction for crude today, where this bullish trend requires a base to be built above 75.80 over an intraday basis as the pattern will not fail unless a clear breach of key support 73.55 is evident.
The trading range for today is among the key support around 74.80 and the key resistance around 81.00.
The short term trend is to the downside as far as 84.00 remains intact with targets around 61.60.
Weekly ReportSupport77.7577.0076.1575.8075.15Resistance78.5079.5080.1081.0082.35RecommendationBased on the charts and explanations above our opinion is buying crude around 77.75 targeting 80.10 and stop loss below 75.80, might be appropriate.