Morning Report : Crude Oil Futures for October Settlement

Fluctuations continue, where oil is trading among a narrow range since three days, inside the wedge formation. The commodity continues pushing to the upside to reach near the 50 days SMA again, a break above 90.50 may push the commodity higher toward the main descending resistance which is very near to 91.50 area, accordingly there may be some room to the upside up to 91.50 area. While to the downside we need a breach initially below 88.00 over four-hour basis followed by the ascending support of the wedge around 86.30 now to confirm any bearish scenario. Therefore, due to the near technical barriers to the up and downside, we remain neutral this morning awaiting confirmations.

The trading range for the day is among the major support at 83.00 and the major resistance at 92.00.

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 staying aside awaiting more confirmations.