Morning Report

The expected harmonic butterfly was negated and we were right when we didn't depend on it asa bearish crab pattern is noted. Meanwhile, crude rebounded from point D2 representing 261.8% correction for the BC leg from the crab pattern around 105.25; despite, ruling out the retest of 106.30 - 106.50 by touching point D3 representing 161.8% correction for the XA leg pattern. We expect the bearish trend to affect overall trading for crude today, if a four hour closing is not witnessed above 106.50.

The trading range for today is among the key support around 100.40 and the key resistance around 107.30.

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 selling crude around 105.25 targeting 102.20 and stop loss with a fur hour closing above 106.50, might be appropriate.