Morning Report for Crude Oil Futures for September Settlement

After touching 80.17 Oil pulled back toward 82.00, however it reversed quickly to breach 80.00 and sharply fall on heavy selloff during the asian session to print the lowest at 75.70. The commodity pulled back again attempting to reach 80.00 pivot . The intraday downside movement is very strong and the bearish trend is obvious therefore, we will continue to expect more bearishness. Trading back above 80.00 may delay the continuation of the downside move.Trading range for the day is among the major support at 75.00 and the major resistance at 85.50.The short term trend is to the downside with steady daily closing below 100.00, targeting 65.00.

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RecommendationBased on the charts and explanations above we recommend selling oil around 79.75 targeting 77.50 and 75.75. Stop loss with four-hour closing above 80.00 may be appropriate