Weekly Report (02-06 August)

Crude rushed to the upside to retest the support for the rising wedge previously breached, which clearly turned into resistance at 79.35; this level held against crude supported by overbought signals. Therefore, we expect a downside move this week targeting areas from 77.60 then 75.90. Daily closing above 79.35 weakens the bearishness and might lead crude higher towards 80.45-81.00.

The trading range for this week is expected between the support at 74.90 and the resistance at 81.00.

The short term trend is to the downside as far as areas of 84.00 remain intact targeting 61.60.

RecommendationBased on the charts and explanations above our opinion is selling oil around 79.35 targeting 77.60 and stop loss above 80.45 might be appropriate this week