Today's plan is based on the search for favorable prices for the sale of the instrument since on May 13. The 1/2 WCZ of 61.61-61.44 was broken. This makes it possible to assume a price reduction to a weekly CZ of 59.91-59.57. Just above this zone is the psychological level, thus the reaction to it will be decisive for the downward movement.
It is important to note that a decline to the current week's minimum will also lead to the emergence of demand, which was already the case yesterday and the day before yesterday. This is possible due to the fact that oil has reached the zone of the average weekly move. Closing trades below this zone at the end of the week has a probability of lower than 30%. This should be taken into account when holding a short position.
For violation of the downward impulse will require the closure of today's trading above the level of 62.51-62.34. It is important to understand that this absorption will open the way for the growth of oil to $65 per barrel. There is a 30% probability of implementing this model, which makes it auxiliary.
Daily CZ - daily control zone. The area formed by important data from the futures market, which changes several times a year.
Weekly CZ - weekly control zone. The area formed by marks from the important futures market, which changes several times a year.
Monthly CZ - monthly control zone. The area is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com