Crude completed forming the harmonic technical pattern at 90.45 - 90.50, where it has initially started moving strongly to the downside since touching this level. In the image above, the pattern has been completely formed and some overbought signs are noted on Stochastic and could bethe reason behind pushing crude towards technical targets for the harmonic pattern that starts at 83.10, representing 38.2% correction for the CD leg formation from the harmonic pattern. We expect a bearish intraday direction to effect crude through trading today.
The trading range for today is among the key support around 85.70 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 selling crude around 88.60 targeting 85.70 and stop loss above 89.75, might be appropriate.|