Weekly Report (04-08 July, 2011) for Crude Oil Futures for August Settlement

Oil is still below the 95.50 key level, the commodity started the week higher and now trading around 95.30, above the descending resistance of the falling wedge formation we mentioned previously, while this is a good bullish hint, we still need a closing above the 95.60 area for more confirmation for any upside movement this week. The 95.60 area is a neckline for a bullish head and shoulder pattern which might be in progress. Therefore it's better to stay aside and wait for a four-hour closing above 95.60 to turn bullish.

Trading range for the week is among the major support at 87.00 and the major resistance at 102.00

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

Previous Report

Support95.0094.3093.4092.8092.30
Resistance95.6096.2097.0097.7598.55
RecommendationBased on the charts and explanation above we recommend buying oil with four-hour closing above 95.60 targeting 97.50 and 100.00 stop loss with four-hour closing below 95.30 may be appropriate