Crude rallied yesterday, and if you follow our reports you would have known as we signaled the possibility by 105.25 which needed to be breached or else the downside move will be halted. The upside move is a retest to the ascending breached channel and the move also unloaded the positivity on RSI which is now neutral. Therefore, we believe that crude will move south again to retest 107.10 which if breach will extend the downside move again.
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 108.20 and take profit in two stages at 107.20 and 105.25 and stop loss with four-hour closing above 109.65 might be appropriate|