Morning Report for Crude Oil Futures for August Settlement
The 161.8% extension of the XA leg for the butterfly pattern which is the potential reversal zone for the pattern proved its strength as oil rebounded from levels near 91.60-92.00 to test areas around 95.00. We expected a reversal from levels near 95.50 for a re-attempt to the downside to test again near the lows around 92.00, oil reversed last night to trade around 93.30 at the moment. RSI below 50 and suggests negativity, therefore, we expect the downside move to continue today, however any four-hour closing above 95.00 may negate our intraday bearish scenario.
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 94.30 targeting 93.00 and 91.60 Stop loss with four-hour closing above 95.00|