Morning Report: Crude Oil Futures For February Settlement

Oil extended the gains yesterday to reach near the top of the minor descending channel shown above. While this pattern may be a bullish continuation flag;however, we may see price reversal from the current levels around the descending resistance of the channel for a possible downside attempt within the flag formation. Accordingly, we expect some intraday downside attempts today.

The trading range for the day may be among the major support at 95.00 and the major resistance at101.00.

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 100.50 and take profit at 99.00 and 97.25 stop loss with daily closing above 101.40 might be appropriate.