The bullish slant in trading is controlling crude, but in return the bearish harmonic pattern appearing in the daily chart above is still intact as long as stability in trading is below $82.60. We still expect a bearish direction that may once again return due to the bearish harmonic butterfly pattern, pushing crude in an attempt to once again stabilize below $90.00 to insure this expected bearish direction. Stochastic is attempting a negative crossover from overbought areas, thereby insuring expectations of resuming trading below 92.60.
The trading range for today is among the key support around 86.75 and the key resistance around 93.95.
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 91.85 targeting 87.30 and stop loss above 92.60, might be appropriate.|