After the ascend that was expected yesterday, crude moved flawlessly with it in a sharp manner according to the image above; whereas from a harmonic technical analysis' point of view, there are two possibilities the first is a butterfly pattern - since the AB leg corrected lower than 76.4% from the XA leg - that will prevail around 103.35, or a crab pattern and expected reversal levels of 104.25 and 105.30. Momentum indicators are giving off overbought signs, but at the same time due to the butterfly pattern, we remain neutral today until we insure that the harmonic crab pattern has been completed around point D2 or D3.
The trading range for today is among the key support around 98.00 and the key resistance around 106.85.
The short term trend is expected towards the upside as long as the daily closing is above 98.00 with targets at 113.35.
|Recommendation||Based on the charts and explanations above our opinion is remaining neutral until signs that will insure the upcoming direction appear, might be appropriate.|