Morning Report for Crude Oil Futures for August Settlement
Downside pressure on oil continues, after breaching 95.70 area, the commodity dropped to achieve our first technical target and reach near 94.10 areas, however it retraced back toward 95.80 again for a good opportunity to short market again, at the moment it's trading back around 94.50. We mentioned earlier that we need a breach of 94.00 areas and the 200 SMA to increase the odds of more downside movement during the week. Therefore we will hold into our negative intraday expectations for oil awaiting a breach of the mentioned level and so long as it's trading below 95.70.
Trading range for the day is among the major support at 90.00 and the major resistance at 99.00
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 selling oil around 95.80 targeting 94.10 and 93.00. Stop loss with four-hour closing above 96.00 OR selling oil with four-hour closing below 94.00 targeting 93.00 and 91.50, stop loss with four-hour closing above 94.30 may be appropriate.|