Oil pulled back to kiss 85.00 pivot , just below our entry level, and reversed again to trade lower, currently approaching 83.00. RSI is heavily oversold, we need pullback that grab RSI out of oversold area again to confirm any bullish attempt. However, we hold onto our bearish expectations so long as trading is below 85.30 over four-hour basis.
Trading range for the week is among the major support at 78.00 and the major resistance at 89.60.
The short term trend is to the downside with steady daily closing below 100.00, targeting 65.00.
| Support | 82.80 | 82.00 | 81.50 | 81.00 | 80.00 |
| Resistance | 85.00 | 85.30 | 86.00 | 86.40 | 87.00 |
| Recommendation | Based on the charts and explanations above we recommend selling oil around 85.35 targeting 82.80 and 80.00. and stop loss with four-hour closing above 86.00 OR buying Oil around 80.20 targeting 82.80 and 85.00 and stop loss with four-hour closing below 80.00 may be appropriate. | ||||
Please see the attached chart below...