Morning Report : Crude Oil Futures for October Settlement
Oil continued to trade negatively yesterday, without any noticeable pullback to invalidate our expectations for a bullish pullback toward 86.50 areas. The commodity is currently trading below the ascending support after successfully breaching the important level yesterday , the breakout occurred with low volume levels due to the U.S holiday. Therefore, we will be cautious confirming the downside reversal, awaiting a breach below 83.00. In general the downside move for oil is expected to continue over intraday basis.
The trading range for the day may be among the major support at 79.50 and the major resistance at 87.70.
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 85.00 targeting 83.00 and 80.00. Stop loss with four-hour closing above 86.60|