Technical Outlook:

Sept Crude Oil: Crude oil prices soared to 8177 fueled by last week’s strong close above 7850 and the new month’s Gap open above 8000 into Monday’s pit session. Prices hung on the highs for most of the session before closing at 8134 with gains of $2.39. The market is in a strong breakout trend with a Bull bias for today’s action, buying on dips until 8050 is violated.

Heading into the pit session, trade holding above yesterday’s 8177 high is likely to resume rallies early on targeting 8250 XX and 8300-8315 XXX Resistance zones. If we fail to hold 8177, buyers can wait to scale into the 8135-8100 X Support range with Stops below 8090 and use all listed X’s for objectives. A secondary scalp play is offered against 8065-8050 XX Pivot Support with an out below 8040.

On the downside, failures to trade above 8200 can be cautiously shorted with targets at 8135-8100 X and 8065-8050 XX Supports. Trade below 8050 is moderately Bearish on short term trade triggering a test of the 8000 level to 7940 making up XXX Support. Scale out of shorts in the XXX range and/or reverse long for a decent rebound. Trade or a close below 7940 alerts for a corrective turnover developing in the days ahead.

Monthly Chart:

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Weekly Chart:

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