Morning Report for Crude Oil Futures for August Settlement
Our intraday bearish expectation was invalidated yesterday after breaching 94.30 level, we mentioned previously that oil should close over daily basis below 94.00 to confirm a short term downside reversal, however it failed to do so and oil rallied to breach the important level around 95.80 and record the highest at 97.46. A possible ascending channel may be forming where RSI turned positive above 50, and MACD completed a bullish crossover, therefore we expect bullishness for oil during the upcoming sessions, so long as it's trading above our threshold at 95.80.
Trading range for the day is among the major support at 93.00 and the major resistance at 102.00
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 among 95.80-96.00 targeting 97.50 and 99.00. Stop loss with four-hour closing below 95.70|