Yesterday's trading was somehow worrisome after we saw the weakness of the harmonic pattern due to the timeframe extension of CD leg. Nevertheless, reaching 111.00 areas and slightly lower with no four-hour closing and rushing higher again to 114.50 keeps the harmonic pattern valid and suggests reaching 115.55 and breaching the latter will extend the move towards 118.45. We will keep our positive expectations valid though a four-hour closing below 111.00 will extend the move towards 109.75 at least.
The trading range for today is among the major support at 108.00 and the major resistance at 116.40.
The short term trend is to the upside with steady daily closing above 105.75 targeting 118.45.
|Recommendation||Based on the charts and explanations above our opinion is buying crude around 112.20 and take profit in stages at 114.50, and 115.55 and stop loss with four-hour closing below 111.00 might be appropriate this week (acquiring the stop loss we suggest selling crude below 111.00 and take profit in stages at 109.75 and 108.65 and stop loss with four-hour closing above 113.00 might be appropriate)|