The commodity is still hovering around 97.00 level trading within a very narrow range just below the 50 day SMA (in green) , despite the narrow trading, its obvious that the commodity is under downside pressure, as it's trading below the 50 SMA and the breached support of the ascending channel, there is also a bearish flag formation that was breached this morning (dotted and colored in red), therefore and under the current conditions bearishness is in favor over intraday basis, and shall be confirmed with a breach of 96.80-70 over four-hour basis.
Trading range for the day is among the major support at 94.00 and the major resistance at 99.50.
The short term trend is to the downside with steady daily closing below 105.00, targeting 87.00.
| Support | 96.50 | 95.90 | 95.00 | 94.60 | 94.00 |
| Resistance | 97.40 | 97.80 | 98.40 | 99.40 | 100.00 |
| Recommendation | Based on the charts and explanations above we recommend selling oil with four-hour closing below 96.80 targeting 95.00 and 94.00 stop loss with four-hour closing above 97.30. | ||||
Please see the attached chart below...