Morning Report for Crude Oil Futures for September Settlement

Oil rallied yesterday to reach 89.00 and reversed sharply to trade again around 87.50. However it ended the day up. The upside move has somewhat slowed down during the recent couple of days to kind of range trade with an upside bias,the current technical outlook suggests a possible continuation for a retest of important breached support levels. Therefore, we still expect more upside attempts toward 90.00 area so long as daily closing is above 85.00Trading range for the day is among the major support at 83.00 and the major resistance at 91.00.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 buying oil around 86.20 targeting 88.00 and 90.00. Stop loss with four-hour closing below 85.00.