Morning Report

The bearish scenario from top 106.92 has changed into the present levels after breaching 98.60 according to the image above, where the bearish wave has taken a Impulsive wave formation that could be within the Zig Zag wave. We are currently within stages of forming the last fifth waveof Awave, which meets with 50% correction around 96.05. Henceforth, we could witness some bullish correction to complete B wave and then return to enter another bearish wave; RSI touched oversold areas that could insure chances of a bullish correctional starting to form. We recommend remaining cautious as we expect a bullish correction to occur only if 96.05 is not breached, in order to complete the B wave after 98.60 fails to be constructed.

The trading range for today is among the key support around 93.05 and the key resistance around 100.40.

The short term trend is expected towards the upside as long as the daily closing is above 98.00 with targets at 113.35.

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Weekly Report

RecommendationBased on the charts and explanations above our opinion is buying crude around 96.60 targeting 98.60 and stop loss with a daily closing below 95.70, might be appropriate.