Morning Report for Crude Oil Futures for September Settlement
As we expected, sharp fluctuations dominated trading yesterday on oil. The latest rally, signals the bulls are more interested and the very bearish sentiment has eased. Technically speaking, price is showing signs of recovery over the four-hour chart, where there is a possibility that an ascending triangle is forming, while the commodity is trading near the resistance of the formation and the descending resistance shown in image. Therefore, We may see a down side retracement before heading higher today however we need a confirmation of the upside move by breaching 82.90 over hourly basis.Trading range for the day is among the major support at 77.00 and the major resistance at 88.50.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 with hourly closing above 82.90 targeting 85.20 and 88.00 and stop loss with hourly closing below 82.50|