Morning Report for Crude Oil Futures for October Settlement
The commodity retraced yesterday to reach near 83.35 to achieve our target at 84.00 before rebounding quickly to challenge 86.00 again . 86.00 area has proven strength, and the descending trend line is still intact and bearishness remains valid, however four-hour closing is steady above 85.00 and the 50 SMA as well, and this is a bullish sign, mixed technical signals push us to stay aside until a breach of 86.00 to the upside or 85.00 to the downside.Trading range for the day 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 with four-hour closing above 86.10 targeting 88.20 and 89.60. Stop loss with four-hour closing below 85.00|