Crude moved higher towards 110.20 yesterday inline with the expected move, and then returned to breach 107.65 and 107.10 and rushed south to the low of 105.45; also inline with the expected reversal. Crude is now stable below 107.10 and accordingly entered the downside move and might trigger the test of 61.8% correction shown above and then further towards 100.90 as far as it stabilizes below 61.8%. Those targets remain valid with stability below 108.70 and preferably as we said below 107.10 which insures the reversal of the trend to the downside. Overbought signs on momentum indicators might increase the volatility and possibly and upside correction.
The trading range for today is among the major support at 103.30 and the major resistance at 111.40.
The short term trend is to the upside with steady daily closing above 104.00 targeting 116.75.
|Recommendation||Based on the charts and explanations above our opinion is selling crude around 107.10 targeting 103.30 and stop loss with daily closing above 108.70 might be appropriate|