Oil rallied again yesterday to test the latest high near 99.70, this area is a potential resistance zone where the 61.8% Fibonacci level is located alongside a horizontal resistance, while stochastic continues to be extensively overbought. Therefore, we will continue to anticipate downside attempts from the current areas. A breach above 100.00 may invalidate the correctional scenario and send oil even higher.
The trading range for the day is among the major support at 95.00 and the major resistance at 100.00.
The short-term trend is to the downside with steady daily closing below 100.00 targeting 65.00.
*The provided chart based on GMT+2*
|Recommendation||Based on the charts and explanations above we recommend selling oil around 99.30 targeting 98.30 and 96.40. Stop loss with four-hour closing above 100.00|