Morning Report for Crude Oil Futures for July Settlement

After touching levels near 96.60, oil rebounded from this strong support level, however if we look at Stochastic we find that it crossed over negatively from overbought areas, in addition to a bearish candle formation that drove oil to trade below 99.05; therefore, the harmonic structure is still valid, and we expect oil toattempt at a downside move again to breach 96.60, where a daily closing below this level will accelerate the move towards 94.45.

The trading range for today is among the major support at 94.45 and the major resistance at 101.80.

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

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RecommendationBased on the charts and explanations above our opinion is selling crude around 99.05, and take profit in stages at 96.60 and 94.45. Stop loss with daily closing above 100.70 might be appropriate for today