Our neutrality yesterday remains intact, where we currently see that crude stabilized above correction 76.4% at 87.05 and thereby pointing that we may be in front of the flat wave pattern that had started from levels above slightly 89.00. We expect the bullish trend to continue through the intraday trading. Note that stochastic is showing overbought signs that may cause a sharp fluctuation through the bullish direction. Keep in mind that upside trend requires trading above 85.70 within the four hour interval.
The trading range for today is among the key support around 83.10 and the key resistance around 90.50.
The short term trend is expected sideways as long as trading is between 90.50 and 70.00 with weekly closings.
|Recommendation||Based on the charts and explanations above our opinion is buying crude around 87.05 targeting 89.75 and stop loss below 85.70, might be appropriate.|