Morning Report

Due to the bearish butterfly pattern, crude met 87.30 - predicted in last week's weekly report -; however, despite of this the butterfly pattern did not achieve any suggested targets till now. We expect 38.2% correction for the CD leg pattern around 84.30 to be reached, in order to resume the least target for the harmonic pattern in order to stabilize it. Stochastic is still moving to the downside, which is an additional assurance that crude continues attempting to breach 87.30 to directly push towards 84.30. These expectations require stability below 92.60 within the daily closing, although we prefer stability below 90.50 in order for it to continue.

The trading range for today is among the key support around 84.30 and the key resistance around 91.35.

The short term trend is expected towards the upside as long as trading is above 84.00 with targets at 99.00.

Previous Report

Weekly Report

RecommendationBased on the charts and explanations above our opinion is selling crude around 88.20 targeting 84.30 and stop loss above 89.85, might be appropriate.