Technical outlook:
An extremely larger picture has been presented here through the weekly chart for Crude Oil. First, please note that oil is at the 50% fibonacci resistance of the entire drop from around 110.00 levels. Second, the wave structure of the counter trend rally that began from sub 26 levels in February 2016 seem to be complete now or very close to completing. Tomorrow we shall bring up a shorter time frame update to highlight the same. Traders who took long positions earlier should be preparing to book profits around current levels, 68.10. Looking at the wave counts, Crude Oil looks to be completing an A-B-C corrective rally and is terminating into wave (4) somewhere close to near about levels. To elaborate further, it has completed a standard flat 3-3-5 as wave (4) or is near to completing. A high probable trade setup from here should be on the south side. Traders should be looking to prepare to sell around these levels.
Trading plan:
Prepare to sell around 69.00/70.00 levels, stop above 71.00, target is open. This is a positional trade setup.
Fundamental outlook:
There are no major fundamental events lined up for the rest of the day.
Good luck!
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