Morning Report: Crude Oil Futures for January Settlement
Oil started the week higher, to testing 99.00 level this morning, the upside rebound hint that we may have seen a bottom near 95.00 areas, stochastic is attempting to crossover positively as well. However, steady trading above 100.00 shall confirm the continuation of the bullish wave for this week towards the high at 103.35. otherwise, downside pressure may resume to retest the 94.50 major support again. For now, we will wait for more confirmation to suggest the possible upcoming move.
After testing 100.30 areas crude retraced sharply toward 97.00, trading remains above the critical 94.50-95.00 support level. As shown on daily chart above, oil may be in the process of forming a bottom at the 200-days SMA, the continuation of the bullish wave will be confirmed by settling above 100.30. In general, we expect further upside attempts for today, where the upside bias should remain intact so long as price is above 95.00 areas.
The trading range for the week is among the major support at 95.00 and the major resistance at 101.00.
The short-term trend is to the downside with steady weekly closing below 105.00 targeting 65.00.
|Recommendation||Based on the charts and explanations above we recommend buying oil around 97.10 targeting 100.00 and 103.30, stop loss with four-hour closing below 95.30|