Crude sharply and quickly declined towards the suggested target, according to yesterday's recommendations, but itdid not achieve any bullish correction. The harmonic bearish butterfly pattern returned to show its strength and thereby we expect crude to head towards the first target of this pattern, represented in 38.2% correction for the CD leg around 84.30 . Keep in mind that we are in front of strong levels causing most of the bearish waves to fail since the beginning of this month. We are waiting for the four hour closing below 87.30 to insure that the bearish trend continues.
The trading range for today is among the key support around 84.30 and the key resistance around 90.50.
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 with a four hour closing below 87.30 targeting 84.30 and stop loss above 89.85, might be appropriate.|