Morning Report: Crude Oil Futures for March Settlement

Price touched 102.20 and reversed again yesterday, while momentum indicators are providing negative signs today, while the bullish move has started to weaken as seen on ADX. Thus, a downside correction is probable today, for a retest of levels around 100.60, and maybe 99.60-100.00, as a normal retest of the breached resistance for the descending channel. Taking into consideration that stability above 102.20 shall negate the downside correction.

The trading range for today is expected among the support at 97.60 and the resistance at 103.00.

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

*New York Candlesticks*

Previous Report

Weekly Report

RecommendationBased on the charts and explanations above our opinion is selling crude below 101.70 targeting 100.60 and 99.60, stop loss with four-hour closing above 102.60 might be appropriate.