Morning Report: Crude Oil Futures for November Settlement

As shown on chart, the commodity rallied yesterday to stabilize above 80.00 handle, and to trade again above the long term ascending support. While this concerns us about the medium term bearish scenario, we think that so long as price is trading below the main descending support; bearishness will remain intact at least over intraday basis. Therefore, we expect the resumption of bearishness over intraday basis from key resistance levels around 83.0-85.00.

The trading range for the day is among the major support at 77.00 and the major resistance at 85.00.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 selling oil around 83.10 targeting 81.75 and 80.00. Stop loss with four-hour closing above 84.00