Crude oil declined from areas around 87.30 which is originally a harmonic butterfly pattern. We are approaching the first harmonic target at 38.2% of CD leg at 84.30. Stochastic which is trading in oversold areas prevented crude from resuming the bearishness. Nevertheless, we see that crude is likely to continue to the downside towards at least the first target. Breaching the main upside support which organized the CD leg trading further confirms our expectations. Stability above 87.30 weakens the bearish possibility.
The trading range for today is among the major support at 82.75 and the major resistance at 88.60.
The short term trend is to the upside with steady daily closing above 84.00 targeting 99.00.
|Recommendation||Based on the charts and explanations above our opinion is selling oil around 86.15 targeting 84.30 and stop loss with four-hour closing above 87.30 might be appropriate|