Morning Report: Crude Oil Futures for January Settlement
The commodity is moving gradually to the downside attempting to test the latest lows near 97.40. Stochastic oscillator is within oversold areas, however downside momentum is slowing down, where Stochastic and RSI is providing signs of bullish divergence near this support area, therefore, we expect the commodity to recover some of the recent losses, but taking into consideration that we are trading around the middle of the range among 103.00-95.00 making the risk-reward ratio inappropriate; we will wait for another push to the downside to anticipate the upside move.
The trading range for the day may be among the major support at 94.50 and the major resistance at 101.50
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 96.00 targeting 97.10 and 98.50, stop loss with four-hour closing below 95.00|