Since reaching the first target of the harmonic pattern at 38.2% correction around 103.20, crude entered a sideways move biased to the upside; however, trading below 106.30-55 maintains the harmonic pattern's effect, which is an ideal bearish crab pattern. Another factor supporting ourexpectations for a bearish moveis current trading outside the ascending support which carried the CD leg above it.
The trading range for today is among the key support around 101.05 and the key resistance around 106.55.
The short term trend is expected to be bullish with the stability of daily closing above 98.00 and targeting 113.35.
|Recommendation||Based on the charts and explanations above our opinion is selling crude around 104.80 targeting 101.05 and stop the four hour loss above 106.30, might be appropriate.|