Technical outlook:
The crude oil daily chart view has been presented here to highlight the last wave C, unfolding into 5 waves, within the A-B-C corrective rally that was discussed on the weekly chart on Friday. As seen here, the the wave counts are clearly indicating that 5 waves looks to be complete from the lows at 42.00 levels, which was a potential wave B termination point. Also note that the last wave 5 has unfolded into a potential ending diagonal structure, indicating a potential trend reversal. If this wave count holds to be true, prices should break below 62.00 levels immediately and eventually through 57.00 levels, before producing any meaningful correction. Aggressive traders who went short on Friday based on the weekly chart recommendations, should consider holding positions with risk above 71.00 levels while conservative traders please wait until the price breaks below 62.00 levels.
Trading plan:
Aggressive traders remain short with stop above 71.00, target 62.00 and 57.00 at least.
Fundamental outlook:
Watch out for the German Consumer Price Index and US PCE Core to be out today between 08:00 AM to 08:30 AM EST.
Good luck!The material has been provided by InstaForex Company - www.instaforex.com