Morning Report for Crude Oil Futures for July Settlement

We will have to study trading over one-hour basis today because of the narrow and unclear trading lately. it's not confirmed yet whether this harmonic structure is a bat or a butterfly, and both of them are not perfect, however we can consider them valid. 103.50 is the first potential reversal zone for the harmonic structure, as long as 96.30 bottom of point C remain intact. However, it's better that oil stabilizes above the harmonic support shown in image at 98.15, therefore, we expect intraday bullishness for oil today taking into account that some downside move may precede that, to take the relative strength index out of overbought area.

The trading range for today is among the major support at 96.60 and the major resistance at 104.50.

The short term trend is to the downside with steady daily closing below 109.75 targeting 85.40.

Support100.4099.8599.4598.2097.70
Resistance101.80102.20102.75103.50104.50
RecommendationBased on the charts and explanations above our opinion is buying crude with one hour closing above 100.40 and take profit in stages at 101.80 and 102.75 and 103.50 and stop loss with daily closing below 99.45 might be appropriate