Morning Report for Crude Oil Futures for October Settlement

Yesterday oil dropped almost 300 points to reach just below 83.00 before rebounding again above 85.00 . These volatile movements are not odd , this is why our analysis is mainly based on four-hour and daily closing. Again oil is trading around 85.00 area with no real changes since two days, therefore, we will hold onto neutrality until a breach of the previously mentioned levels occurs.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.

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RecommendationBased 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 OR selling oil with four hour-closing below 84.70 targeting 83.00 and 81.25 Stop loss four-hour closing above 85.80.