Midday Report for Crude Oil Futures for July Settlement
Stabilizing below 103.00-103.50 levels confirmed the expected bearish bat harmonic pattern that pushed oil price to decline sharply. The first target of that pattern at 100.70 has been breached. according to harmonic studies rules, breaching the first target could force the price to show more bearishness reaching the second target at 99.05$ which is 61.8% Fibonacci correction of CD leg. We do not exclude testing the first extended target at 98.00$ (76.4% Fibonacci correction).
The trading range for today is among the major support at 95.05 and the major resistance at 103.50.
The short term trend is to the downside with steady daily closing below 109.75 targeting 85.40.
|Recommendation||Based on the charts and explanations above our opinion is selling crude below 100.70 and take profit in stages at 99.05, 98.00 and 96.60. Stop loss with daily closing above 104.60 might be appropriate|