Morning Report for Crude Oil Futures for August Settlement
As we mentioned yesterday, oil pulled back after breaching 92.80 area and now trading around 94.25, the 200 day SMA and the potential reversal zone of the butterfly pattern -shown in image- succeeded in rejecting price, where RSI is still inclining but below 50 and price is below the major resistance around 96.60-70 area, therefore we might see a reattempt to the downside today, but we need four-hour closing to remain below 96.00 level.
Trading range for the week is among the major support at 85.00 and the major resistance at 98.00
The short term trend is to the downside with steady daily closing below 106.70, targeting 87.00
|Recommendation||Based on the charts and explanations above our opinion is selling oil around 95.50 targeting 93.20 and 91.60 Stop loss with four-hour closing above 96.20|