Morning Report: Crude Oil Futures For October Settlement
The awaited correction was limited to our first target at 88.21 yesterday, as oil rebounded again to attempt to breach the 89.00 area , to reach near the Weekly Pivot R2 and just above 89.80 where it failed to stabilize and dropped again to trade below 89.00 last night. The commodity formed a bearish flag formation suggesting a possible downside reversal from the current levels, therefore, and we anticipate a downside correction for this morning targeting initially 87.70 area.
The trading range for today is among the major support at 85.00 and the major resistance at 92.50.
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 selling oil around 89.15 targeting 87.80 and 85.00. Stop loss and reverse order with hourly closing above 90.00 targeting 92.00 and 94.00. Stop loss with four hour closing below 89.00|