Morning Report for Crude Oil Futures for August Settlement

Narrow trading continues since yesterday on lower liquidity, the commodity is stuck among 94.70-95.50 area, and the sideways movement prevails. Anyhow, the possible inverted head and shoulders formation is still valid but we need a breach of the neckline near 95.60-95.70 area to confirm the completion of the bullish pattern. We expect an upside movement for today, any pull back should be limited to 93.00 area for the bullish bias to be sustained.

Trading range for the day is among the major support at 90.00 and the major resistance at 100.00.

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

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Weekly Report

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. OR buying Oil around 93.80 targeting 95.50, 97.50 and 100, stop loss with four hour closing below 93.30