Morning Report

Oil advanced towards 87.30 which was awaited to be tested yesterday and now we can see the bearishness returning on the pair affected by the bearish harmonic pattern which is still pressuring crude to the downside. The harmonic target is at 84.30 which is 38.2% correction of CD of the pattern. Stochastic is oversold and that might increase the volatility of the expected downside move for today. We recommend reviewing our previous reports for the classic analysis and the expected targets as well.

The trading range for today is among the major support at 84.30 and the major resistance at 90.50.

The short term trend is to the upside with steady daily closing above 84.00 targeting 99.00.

Morning Report

Weekly Report

 
Support86.7586.1585.7085.0084.60
 
Resistance87.7588.2088.6089.0589.85
 
RecommendationBased on the charts and explanations above our opinion is selling oil around 87.30 targeting 84.30 and stop loss with four-hour closing above 88.60 might be appropriate