Morning Report for Crude Oil Futures for September Settlement
Heavy selloff sent oil to trade near 85.00. On the weekly chart we can see how the commodity breached the channel that was carrying price movement during the last three years and the 52 week SMA, and the latest lower low at 89.60 thus confirming that oil technically entered a possible bear market, all point toward more bearishness. Nevertheless, we have reached 85.00 important level, and due to the heavy selloff that occured lately without any noticeable pullbacks, we expect an intraday pullback before resuming the major downside move.Trading range for the day is among the major support at 89.60 and the major resistance at 80.00.The short term trend is to the downside with steady daily closing below 100.00, targeting 65.00.
|Recommendation||Based on the charts and explanations above we recommend buying oil around 85.15 targeting 87.00 and 89.40. Stop loss with hourly closing below 85.00 may be appropriate|