Oil rallied to activate our morning scenario. If we examine the hourly charts, the commodity may be forming a broadening top formation and the resistance of the formation resides around 83.70 area along with the 50% Fibonacci correction of the latest short term bearish wave, we anticipate a good resistance among this area, however if breached we may see a deeper correction toward the 61.8% Correction level and the descending trend line shown. Anyhow our weekly expectations for oil remain bearish so long as four-hour closing remains below 85.00.
Trading range for the week is among the major support at 74.00 and the major resistance at 89.00
The short term trend is to the downside with steady daily closing below 100.00, targeting 65.00.
|Recommendation||Our morning scenario remains valid.|