Weekly Report (01-05 August, 2011) for Crude Oil Futures for September Settlement
Breaching 97.00 level accelerated downside momentum and oil dropped sharply to reach our first target at 95.00, where the 200 days SMA is loacted, from there the commofity rebounded quicky at this weeks open with a clear upside gap to close over four hour basis back above 97.00, MACD is attempting to crossover positvilty. We expect an upside move for this week so long as trading is above 94.00 level.Trading range for the week is among the major support at 91.50 and the major resistance at 100.50.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 we recommend buying oil around 96.00 targeting 98.00 and 100.50. Stop loss with four-hour closing below 95.00|