Morning Report for Oil futures for August settlement
The four-hour closing below 97.50 pressured oil to decline reaching 95.70 as we expected yesterday, breaching 97.50 delayed the positive expectations for oil. Observing the 4-hour chart, we will see that oil rebounded to the upside from the main upside channel's support at 94.55; also the bullish 0-5 harmonic pattern didn't fail, where oil is still trading above D point. Therefore, there is a chance for an upside trend for today, our expectations remain strong as oil consolidates above the upside channel's support mentioned. A breach of 97.60 with four-hour closing above it could support a clear positive outlook.
The trading range for today is among the major support at 92.30 and the major resistance at 100.10.
The short-term trend is to the downside with steady daily closing below 105.00 targeting 87.00.
|Recommendation||Based on the charts and explanations above our opinion is buying crude around 95.40 and take profit in three stages at 97.75, 98.50 and 100.50, and stop loss with four-hour closing below 93.65 might be appropriate.|