Morning Report for Crude Oil Futures for August Settlement
A minor pullback from our first target at 97.50 toward 96.50 area preceded the continuation of the upside move this morning, breaching the neckline of the bullish head and shoulders pattern near 95.60 sent oil shooting upward, the complete target for the pattern resides near 101.00 area, however we will follow price action to warn for any changes or negative signs. RSI is almost overbought; therefore, we may witness some correction before any continuation to the upside. We still hold onto our bullish expectations for oil.
Trading range for the day is among the major support at 93.00 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.
|Recommendation||Based on the charts and explanation above we recommend buying oil around 96.50 targeting 98.00 and 100.00. Stop loss with four-hour closing below 96.50 may be appropriate.|