Morning Report: Crude Oil Futures for January Settlement
The awaited downside breakout materialized yesterday, where the commodity breached important intraday downside barriers starting from the bearish rising wedge formation we mentioned earlier followed by the 99.60 horizontal support, to extend bearishness towards 97.70 now. RSI is negative and about to dip within oversold areas, next potential supports reside at 97.10-97.20 followed by the 200-days SMA around 95.50. The downside pressure could continue towards the aforementioned areas, while so long as trading is steady below 99.60 we expect downside pressure to remain dominant.
The trading range for the day may be among the major support at 95.00 and the major resistance at 100.00.
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 selling oil around 99.00 targeting 98.00 and 96.00 stop loss four-hour closing above 99.65|