Weekly Report (29 August - 01 September 2011) for Crude Oil Futures for October Settlement
86.00 area managed to halt upside attempts for oil numerously, the area shall be significant in determining the next short term direction for oil. Breaching 86.00 over four -hour basis may signal continuation toward 90.00 area again over the short term, and may be followed by the main descending trend line and the 200 days SMA around 94.00-95.00 if 90.00 is surpassed. Our outlook for oil remains neutral awaiting a breach of 86.00 to confirm bullishness for the week. On the other hand a breach below the ascending support around 83.00 areas will signal the resumption of bearishness.
Trading range for the week may be among the major support at 80.00 and the major resistance at 95.00.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|