Morning Report for Crude Oil Futures for August Settlement

After testing 95 areas oil dropped heavily to test the major ascending trend line support near 89.50 to achieve most of our targets over daily and weekly basis. Yesterday's closing was below the 200 SMA and the 93.00 support area and this is a very bearish sign, however the medium term trend line that was tested yesterday may form a good support for oil in addition to that RSI is showing a bullish divergence. Therefore we have some mixed signals for today; nevertheless we believe that stability below 93.00 will keep the downside movement dominant. While a daily close above 94.60 may negate our scenario

Trading range for the today is among the major support at 88.00 and the major resistance at 95.00

The short term trend is to the downside with steady daily closing below 106.70, targeting 87.00

Previous Report

Weekly Report

RecommendationBased on the charts and explanations above our opinion is selling crude around 93.40 and take profit in stages at 91.60, 89.70 and 88.00. Stop loss with daily closing above 94.60 may be appropriate for this week.