Crude sharply fell, where the harmonic crab pattern is favored for its possible reversal levels that could cause major fluctuations; however, according to the chart above, crude has stabilized below the D point around 106.30 - 106.55 , thus more bearish movements are awaitedto retest the initial target for the harmonic pattern. The primary target for the pattern is in 38.2% correction for the CD leg. Note that if stability below 107.30 fails, a bullish trend will form leading us towards levels around 108.00 then 109.65 as we recommend reviewing the link below for crude's classical analysis, in order to note how the breach will affect level 107.30.
The trading range for today is among the key support around 101.80 and the key resistance around 109.65.
The short term trend is expected towards the upside as long as the daily closing is above 98.00 with targets at 113.35.
Previous Report Weekly Report
|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.|