Morning Report for Crude Oil Futures for August Settlement
Breaching 97.70 our threshold level sent oil shooting to record the highest near 99.40 the 50 days SMA, which halted the upside move. Anyhow, the upside bias is clear, as RSI and MACD are clearly biased upward. In the near time 97.70 level is critical for oil and may support trading during the day , on the other hand breaching the 50 days SMA at 99.40 area may extend the move further to achieve extended targets above 100.00. We continue to expect upside movement this morning, and that requires trading above 97.70 area. However we advise being very careful as important employment report is due to be released and may cause volatility in the markets.
Trading range for the day is among the major support at 95.00 and the major resistance at 102.40
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 97.80 targeting 99.30 and 101.30. Stop loss with four-hour closing below 97.60 may be appropriate.|