According to yesterday's midday and morning reports,the reversal from 106.30 considered as an effect ofbearish harmonic crab pattern levelthat been has been fully formed. This pattern is capable ofsending crude downwardsto retest 38.2% correctional levelof the CD leg pattern around 103.00, where an extension towards the downside could be witnessed towards the pattern's second target around 100.90 representing 61.8% of the leg previously mentioned. Note that stability below 106.50 is required with a four hour closing, where stabilizing below this level could weaken the harmonic pattern and carry crude toward levels between 108.00 and 109.60.
The trading range for today is among the key support around 101.80 and the key resistance around 109.30.
The short term trend is expected towards the upside as long as the daily closing is above 98.00 with targets at 113.35.
|Recommendation||Based on the charts and explanations above our opinion is selling crude around 106.00 targeting 103.00 and stop loss with a four hour closing above 107.30, might be appropriate.|