Weekly Report(15-19 August 2011) for Crude Oil Futures for September Settlement
Oil managed to end the week above 85.00 but below last week gap, closing above the gap shall hint the upside move is sustainable and may extend toward 89.00-91.00 area, however we think that there still some room for the upside move this week before any reversal, and closing above 85.00 supports our view. Closing below 83.00 may put the commodity under downside pressure again . Trading range for the week is among the major support at 80.00 and the major resistance at 90.00.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 83.00 targeting 86.00 and 89.60. Stop loss with daily closing below 83.00|