Morning Report for Crude Oil Futures for August Settlement
After rebounding from 89.70 areas, oil managed to breach the falling wedge formation-shown above- and 91.40 areas as we expected to record the highest near 93.20 where it found the 200 days SMA, a strong resistance for the commodity in the near time. The wedge formation suggests more upside potential, and RSI over four-hour basis is positive above 50, therefore, we will continue to expect an intraday upside movement for oil. However trading back below 91.50 may resume bearishness.
Trading range for the day 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 105.00, targeting 87.00.
More On Oil
|Recommendation||Based on the charts and explanations above our opinion is buying oil among 91.80-92.00 targeting 93.20 and 94.40. Stop loss with hourly closing below 91.50 may be appropriate|