Oil’s short-term trend remains downward. Market participants are testing the trend’s key resistance at 97.13 – 96.70. If the price returns below the resistance level, expect a pattern to form and then sell oil with a target at yesterday’s low.
If the Intermediary Zone is broken out to the upside and the American session closes above, the short-term trend will reverse up. We will then consider buying oil with a target in the upper Target Zone at 101.86 – 101.00.
Trading plan for USCrude for today:
Sell according to the pattern from Intermediary Zone 97.13 – 96.70.
StopLoss: According to pattern rules.