Crude's price behaviorscaused previous expectations to fail due to stability above 106.55 within a four hour closing; however, we see major overbought signs appearing on momentum indicators that could cause a bearish correction. If this correction succeedsin sending itbelow 106.55 - 106.30, it could return to trade to the downside. In return, we witness some signs of a upside channel could support the bullish trend in case we insure stability above the highlighted levels. Thesefactors couldforce us tostay aside today until we insure the upcoming direction.
The trading range for today is among the key support around 103.75 and the key resistance around 110.20.
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 explanation above our opinion is to remain neutral until signs appear to insure its upcoming direction.|