Weekly Report (25-29 July, 2011) for Crude Oil Futures for September Settlement

Over daily basis, we can see that oil reached an important level, which is near to the descending trend line shown in red. During the past couple of weeks it formed an ascending channel and a 5-0 harmonic pattern and both hint toward more upside potential, however at the current level near the descending resistance level lets examine the hourly charts on the right, a rising wedge formation may be underdevlopment suggesting a possible short term reversal, therefore we will hold onto our bullish expectations for oil however a breach of 98.80 over hourly basis shall change our intraday outlook into bearish.

Trading range for the week is among the major support at 94.00 and the major resistance at 104.50The short term trend is to the downside with steady daily closing below 105.00, targeting 87.00.

Previous Report

Support98.7098.0097.1096.6095.00
Resistance99.2099.80100.20100.80101.40
Recommendation We recommend buying oil around 98.75 targeting 100.00 and 101.00 stop loss and reverse order with hourly closing below 98.70 targeting 96.80 stop loss hourly closing above 98.90