Morning Report: Crude Oil Futures For February Settlement

Oil rallied sharply yesterday, we mentioned that low volume levels may result in sharp moves and false breakouts within this period, thus avoiding the current market conditions is preferable. Anyhow, we have seen a breach of the bullish flag formation, such breach is a confirmation of the continuation of the bullish trend under normal market conditions, but for now, we prefer to stay aside,avoiding getting whipsawed, awaiting any lower time-frame signal before the midday report.

The trading range for the week may be among the major support at 94.00 and the major resistance at103.45.

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

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Weekly Report

RecommendationBased on the charts and explanations above we recommend staying aside awaiting more confirmation.