Morning Report for Crude Oil Futures for September Settlement

Heavy volatility and fluctuations dominated trading yesterday, where oil rebounded numerously from 96.70-97.00 support but the minor corrections where well capped below 98.00. At the moment it's pushing to the downside again, therefore we will stay aside this morning awaiting a breach of major directional levels. Breaching 96.80 with four-hour closing may extend the downside move while to the upside 98.00 is important for the upside potential to resume.Trading range for the day is among the major support at 94.00 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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Weekly Report

Support97.0096.5095.9095.0094.60
Resistance97.4097.8098.4099.40100.00
RecommendationBased on the charts and explanations above we recommend selling oil with four-hour closing below 96.80 targeting 95.00 and 94.00 stop loss with four-hour closing above 98.20.