After reaching 107.20 oil moved strongly higher and currently trading around sensitive levels. The first is 108.65 which if breached with four-hour closing will revive the bearish view from the harmonic butterfly pattern. The second level is 109.75 which with four-hour closing above it will trigger a strong upside move to test areas around the previous top shown above at point A. Therefore, we remain neutral today awaiting crude to exit the sensitive trading range mentioned.
The trading range for today is among the major support at 105.25 and the major resistance at 112.70.
The short term trend is to the upside with steady daily closing above 98.00 targeting 113.35.
|Recommendation||Based on the charts and explanations above our opinion is selling crude with four-hour closing below 108.65 and take profit in stages at 107.20, and 105.25 and stop loss with four-hour closing above 109.75 might be appropriate|