Morning Report

Oil dropped sharply to touch the 50% Fibonacci level shown on image at 103.00, and that invalidated the bullish technical pattern we mentioned previously, and hinted we are trading in downside biased channel. Momentum indicators are slightly biased to the upside and that may lead to some upside correction within the session; however there is no confirmation for the correction as price has breached an important support and 38.2% Fibonacci at 104.75. Accordingly, we prefer to remain neutraltoday as well.

The trading range for the day is among the major support at 98.70 and the major resistance at 105.90.

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

**New York Candlesticks**

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RecommendationBased on the charts and explanations above we recommend staying aside awaiting more confirmation.