Morning Report for Crude Oil Futures for October Settlement

Oil rallied yesterday to reach the 85.00 barrier and the 61.8% Fibonacci correction of the latest bearish wave, the commodity is also near the short term descending resistance. Accordingly we may see an intraday downside move supported by a possible rising wedge formation as well, however, it requires four hour closing to remain below 86.00.

Trading range for the day is among the major support at 80.00 and the major resistance at 86.00.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 selling oil around 85.50 targeting 84.00 and 83.00. Stop loss with four-hour closing above 86.00