The bearish harmonic butterfly pattern pushed crude sharply to the downside, where any trading below 92.60 could give off chances of more bearish movement and the beginning of a retest of 84.25 that could change the short term trend once again. As for trading today, we expect crude to witness more downside movement and trade below 90.50; thus,signalingthat this direction remain strong. Henceforth, the overall direction is bearish and requires stability below 92.60 within the daily closing.
The trading range for today is among the key support around 86.60 and the key resistance around 92.60.
The short term trend is expected towards the upside as long as trading is above 84.00 with targets at 99.00.
|Recommendation||Based on the charts and explanations above our opinion is selling crude around 89.75 targeting 87.60 and stop loss above 90.50, might be appropriate.|