Morning Report: Crude Oil Futures For February Settlement

The drop was limited to our first target at 97.00 yesterday, where oil rebounded again to breach the resistance at 98.00 and close the trading session above this level. Overall, trading remains confined within the descending short term channel shown on image. Accordingly, we may see a test of the descending resistance of the channel before resuming the bearish attempts again.

The trading range for the day may be among the major support at 95.00 and the major resistance at100.00.

The short-term trend is to the downside with steady daily closing below 105.00, targeting 65.00.

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RecommendationBased on the charts and explanations above our opinion is selling crude around 100.00 and take profit at 98.50 and 97.25 stop loss with daily closing above 100.60 might be appropriate.