Morning Report: Crude Oil Futures For February Settlement

Oil reversed sharply yesterday after testing the descending resistance of the continuation flag pattern shown on image to test 98.20 areas. However, again the commodity is trading near 100.00 areas, the flag pattern hints continuation of the bullish trend, and however Stochastic over daily basis is attempting to leave overbought areas. Accordingly we remain neutral today awaiting further confirmations.

The trading range for the day may be among the major support at 96.50 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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RecommendationBased on the charts and explanations above we recommend staying aside awaiting more confirmation.