Weekly Report (27 June -01 July, 2011) for Crude Oil Futures for August Settlement

After breaking 94.50-70 important support, oil dropped to test the ascending trend support near 90.00 areas, this area is very important, as we can see-on the weekly charts on the left- price is near the 52-week moving average, and the ascending long term trend line. These obstacles may form a good support for oil in the upcoming period, however if we look at the daily charts on the right, we can see that oil managed to break and close with stability below the 200 SMA and 94.50, which is a bearish signal. Therefore, and due to the sensitivity of the current levels, we remain neutral and advise following our updates for more confirmations. Breaching 89.50 with weekly closing may change the medium term outlook for oil to bearish.

Trading range for the week is among the major support at 85.00 and the major resistance at 95.00

The short term trend is to the downside with steady daily closing below 104.60, targeting 85.00

Previous Report

Support89.7088.9088.5087.5087.00
Resistance90.7091.4092.3093.3094.50
RecommendationBased on the charts and explanation above we recommend being neutral awaiting more confirmations.