Morning Report for Crude Oil Futures for July Settlement

Our current concern is the AB leg which retraced more then 61.8% of XA , this weakens the bearish Bat pattern that completes at 103.50, and less than the 76.4% of XA and this also weaken the potential Butterfly pattern that completes at 107.20. Relative strength index is overbought, while stochastic is attempting to touch overbought area and start inclining , therefore we have to be neutral today and wait for a confirmation on the type of pattern

The trading range for today is among the major support at 98.20 and the major resistance at 105.85.

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

RecommendationBased on the charts and explanations above our opinion is staying aside and observing trading for more confirmations may be appropriate today.