Crude has been moving to the downside since yesterday after touching resistance levels between 87.75 - 88.20, where we witness stability below 87.30; thereby, we expect that the negative harmonic butterfly pattern effect to continue. The bearish trend is still expected to affect crude, while keeping in mind that 85.60 could cause some bullish correction (review previous reports to recognize the importance of this level) and stochastic in front of us in the image above, which supports the correction. Henceforth, we expect more bearish movement that could affect crude today.
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 with a daily closing above 89.85, might be appropriate.|