Morning Report for Crude Oil Futures for August Settlement
The very short term pullback we anticipated yesterday after reaching near 98.00 area was completed to achieve our target at 96.51 before rebounding back to resume the overall upside move.Oil recorded the highest near 99.18 just above the 50 days SMA, however it failed to stabilize above the moving average and ended the trading day below at 97.70. The bias is to the upside and this is clear on RSI and MACD, where oil may be forming an ascending channel, therefore we hold onto our bullish expectations for oil so long as trading is above 95.80 and daily closing is above 94.50.
Trading range for the day is among the major support at 93.00 and the major resistance at 102.50
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 96.70 targeting around 98.50 and 100.50. Stop loss with four-hour closing below 96.50 may be appropriate|