Morning Report for Crude Oil Futures for August Settlement

The 5-0 pattern is still valid as oil is still trading around 96.50 area and above the critical level at 95.00 area as breaching it may turn the outlook to bearish, the upside bias is still valid as well, although oil is slightly ranging during the past couple of days. However, there are two important levels to watch that will determine the next direction for oil, 94.00 on the downside and 98.00 on the other side, we may see oil trading among those levels before breaking in a certain direction. However, due to the current sensitive levels we recommended staying aside awaiting more confirmations for the next move.

Trading range for the day is among the major support at 91.50 and the major resistance at 99.50

The short term trend is to the downside with steady daily closing below 105.00, targeting 87.00.

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RecommendationBased on the charts and explanation above we recommend staying aside awaiting more confirmations.