Morning Report: Crude Oil Futures for February Settlement
Oil continued the upside rebound from 98.50 areas, where it's currently near a potential resistance area, a reversal from the current level may form a head and shoulders pattern as shown on chart, and the neckline for the pattern will be around 98.50, and stochastic is within overbought area supporting a downside attempt today. We should take into consideration that stability above 102.40 shall weaken the formation, while steady trading above 103.50 will invalidate the anticipated short term bearishness.
The trading range for the day is expected among the major support at 98.00 and the major resistance at 102.40.
The short-term trend is to the downside with steady daily closing below 105.00, targeting 65.00.
|Recommendation||Based on the charts and explanations above our opinion is selling crude around 102.00 and take profit at 100.60,98.50 and 96.70. Stop loss with four-hour closing above 103.40 might be appropriate.|