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Crude Oil traded in the negative zone, before witnessing a recovery during the initial weeks of May month, the price of oil has risen about 10%, owing primarily to OPEC's unexpected cut that went into force at the beginning of this month. 

Technically, the price met resistance at 6075, which is the 50 EMA sloping downwards on the four-hour time frame, which was breached on Monday 5th June 2023. The Stochastic oscillator is extremely overbought, indicating a strong correction. However, when we look at the chart over a longer time frame, we see a formation of the Butterfly pattern.

Applying the Fibonacci Retracement tool, we see that the prices breached 78.60% fib ratio and compiled B-C leg on. The next big move shows the change in direction again and moves back down for the formation of the C-D leg, forming a 127% or 161.8% extension of the A-B leg which is below the May month low of 5545 levels.

Sell Crude Oil at 6060- 6120 SL 6300 TGT 5400- 5200

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