Weekly Report

After the second attempt to stabilize above 92.60 that failed, we are currently forced to look at the bearish harmonic butterfly pattern that is still under the influence of the possible reversal remaining intact in front of crude's attempts to the move to the upside. Trading stabilized below 127% correction level, followed by the XA leg pattern around 92.60. The chances of a bearish direction will remain intact to retest 87.25 and breach this level, which could pave the way towards retesting $84.25. Note that stability is below 91.35 empowering chances of an awaited downside trend, where we expect some bullish activity that could be possible before descending once again; however, to find out reasons behind this we recommend reviewing previous reports.

The trading range for today is among the key support around 86.05 and the key resistance around 93.10.

The short term trend is expected towards the upside as long as trading is above 84.00 with targets at 99.00.

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling crude around 91.35 targeting 87.25 and stop loss above 92.60, might be appropriate.