Morning Report

With a four-hour closing below 108.70 crude rushed lower activating yesterday's negative expectation reaching the first two targets set in the weekly report. Now, the harmonic formation is not complete where the AB corrected 76.4% of XA leg. This is a four-legged harmonic pattern and accordingly to the leg corrections it's a butterfly pattern. This formation might be the trigger for reaching 99.85 areas while noting the strength of 102.45. For today, we expect a downside move with high fluctuations and volatility due to the overbought signs on momentum indicators and surely the trend is to the downside affected by the suggested bearish formation.

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 98.00 targeting 113.35.

Previous Report

Weekly Report

Support107.10106.55106.05105.85105.25
Resistance107.65108.00108.70109.35109.65
RecommendationBased on the charts and explanations above our opinion is selling crude around 108.00 and take profit in stages at 107.20, and 105.25 and stop loss with four-hour closing above 109.65 might be appropriate