Crude (28.5.2014) respected our last report & reach to target, however bounced again from major support line.
Now crude is trading around $103.60 & as we can see on charts, crude once again reaching to the resistance zone ,from where we already witness 2 reversal earlier. The candlestick pattern producing a negative candlestick pattern which suggest for a reversal ahead. At the same time indicators showing over bought situation.
On fundamental side, even after last week more than 7 MB withdrawal, crude inventories are on higher & there is no disturbance on production side.
Based on above studies, we will prefer to sell crude for possible target around $101 in coming days. A day close above $105.40 will reject the forecast.
