Morning Report: Crude Oil Futures for February Settlement
Oil tested the potential resistance area around 102.00 yesterday, to reverse and dip below 100.00 acquiring our first target. However, again the commodity rebounds attempting to test the level once more. Stochastic has unloaded some of the negativity, however its lagging, thus a continuation of the current wave towards 103.00 areas again won't be confirmed unless we see stochastic breaking the bearish divergence by printing a new highs. In general, we continue to anticipate bearishness within the upcoming period so long as 103.40 remain intact.
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.
Support101.00100.1599.4598.5098.00Resistance101.70102.40103.00103.50104.00RecommendationBased on the charts and explanations above our opinion is selling crude around 102.05 and take profit at 100.60,98.50 and 96.70. Stop loss with four-hour closing above 103.40 might be appropriate.