Morning Report: Crude Oil Futures for February Settlement

Again oil fails to settle below the descending support of the previously breached bullish technical pattern shown above, where the downside action was limited to 100.00 areas. Momentum indicators continue to provide bearish divergence over the daily time-frame. The current rebound threatens the downside potential and suggests a possible bullish attempt towards the highs, for now we remain neutral monitoring developments before the midday report.

The trading range for the day is expected among the major support at 99.60 and the major resistance at 103.35.

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

**GMT+2 Candlesticks**

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