The bearish harmonic butterfly pushed crude to the downside with volatility to breach key support for the bullish trend, where trading through it has organized to form the CD leg pattern. Meanwhile, 23.6% correction was breached following the leg highlighted in the harmonic pattern and thereby causing more bearish movement, to retest the first target for the pattern and represented within the 38.2% correction for the CD leg pattern around 84.30. Stochastic is showing overbought signals that could cause fluctuation, but constantly trading below 88.20 that will maintain chances of a strong bearish trend.
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 around 87.30 targeting 84.30 and stop loss above 88.60, might be appropriate.|