Morning Report for Crude Oil Futures for September Settlement
Areas of 99.20 are preventing oil from moving to the upside, while the effect of the bullish 0-5 harmonic pattern remains valid. We also have an ascending channel with the main support at 95.60 and still protecting the upside trend, and the midline for the channel is horizontal to its support and resistance which supports 99.20 resistance. In general, the upside wave is still likely and stability above 99.20 will trigger another upside wave to the first target for the mentioned harmonic pattern at 101.00 and maybe the second target at 103.00 which are 12.7% and 161.8% of CD leg of the pattern. Our expectations require stability above 97.55 areas.
The trading range for today is among the major support at 95.60 and the major resistance at 101.00.
The short-term trend is to the downside with steady daily closing below 105.00 targeting 87.00.
|Recommendation||Based on the charts and explanations above our opinion is buying crude around 98.00 and take profit in stages at 99.20, 100.40 and 101.00 and stop loss with four-hour closing below 97.55 might be appropriate|