Morning Report for Crude Oil Futures for September Settlement
Closing over daily basis below the 200 SMA and 94.60 hinted more bearishness, indeed the commodity fell to achieve our target at 92.00 and trade just around the 52 week SMA and the long term trend line(colored in black) as shown in image. The current technical barriers are important to oil direction in the upcoming period in addition to 90.00 pivot. Therefore, due to the good risk-reward ratio we expect a rebound from current levels supported by the mentioned technical barriers.Trading range for the day is among the major support at 89.60 and the major resistance at 95.00.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 we recommend buying oil around 91.00 targeting 92.50 and 94.00. Stop loss with hourly closing below 90.80 may be appropriate|