Morning Report

When observing crude's movement from a harmonic technical analysis' point of view latter to achieving yesterday's classical expectations, where crude halted between 61.8% and 76.4% correction to continue the CD leg. In the meantime, we see that crude was able to achieve the breach of the bullish key support taken from both point A and point B, according to our harmonic analysis that expects testing the bottom at point C at 71.05 and perhaps reaching 127% correction for the CD leg at 68.00. The only impediment in front of crude is the positive crossover appearing on stochastic, alongside 76.4% correction at 73.90 and thereby breaching it will cancel out the effect of the positive crossover on stochastic. As a result, any trading below 75.65 will maintain chances of continuing the bearish direction that insures the breach of 73.90.

The trading range for today is among the key support around 71.05 and the key resistance around 79.25.

The short term trend is to the downside as far as 84.00 remains intact with targets around 61.60.

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RecommendationBased on the charts and explanations above our opinion is selling crude around 75.35 targeting 71.05 and stop loss above 76.80, might be appropriate.