Morning Report for Crude Oil Futures for August Settlement

Oil bounced once more from 89.60-89.80 area to achieve our first target at 90.70, however price reached a high near 91.40 then dropped back again to trade within the narrow range below 91.00. If we examine the four-hour timeframe , we can see that price may be forming a possible falling wedge formation and RSI is signaling bullish divergence, this indicates a possible continuation of the upside move, nevertheless, oil dropped quickly below 91.00 and didn't stabilize above the level, therefore, we will stay aside this morning awaiting more confirmations during the upcoming hours.

Trading range for the day is among the major support at 87.00 and the major resistance at 95.00.

The short term trend is to the downside with steady daily closing below 105.00, targeting 87.00.

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RecommendationBased on the charts and explanations above our opinion is staying aside awaiting more confirmations