Morning Report

The commodity dropped to trade below the 100 EMA and above the neckline of the double top pattern, stability below 104.80 may lead to further sharp downside action. The problem is that momentum indicators are not supporting this negativity.

This negativity is a result of combination of breaching the main ascending support alongside the bearish candle stick formation. However, any trading below 106.45 keeps the bearish bias probable, supported by the negative crossover of the 20 and 50 EMA in addition to the negativity on MACD indicator.

The trading range for the day is among the major support at 101.20 and the major resistance at 107.60.

The short-term trend is to the upside with steady daily closing above 99.60 targeting 116.50.

**New York Candlesticks**

Previous Report

Weekly Report

Support104.75104.40103.90103.35102.80
Resistance105.25106.00106.45107.00107.60
RecommendationBased on the charts and explanations above our opinion is selling crude around 105.25 and take profit at 104.40, 103.35 and 102.10. Stop loss with four-hour closing above 106.45 might be appropriate.