August Crude Oil: Crude oil tanked $4.39 on Thursday to close at 9102 after the Bears rejected the 3-day win streak from Mon-Wed. The market closed and trades below its 200-MA now at 9265 with a Bearish outlook from here. Stable trade above the 200-MA at 9265 is needed to temporarily neutralize Bear momentum and potentially spark end-of-week short covering.

For today, look to short rallies against 9170 R1 Pivot Resistance, and against 9250-9265 R2 (200-MA) Resistance with Stops placed 16 cents above each respective zone. Trade falling through 9100-9075 S1 Support will sustain selling pressure to retest yesterday's lows at 9000-8969 S2 Support. A punch to new lows opens the flood gates for the next flush to 8830-8800 S3 to 8715-8700 S4 Support targets. 8500-8400 S5 is a definite possibility in the coming days.

On the upside, buying should only be done against listed Support zones on a test and hold basis. If the 9100-9075 S1 Support zones, a decent round of short covering may kick in and spike prices to 9170 R1 Pivot up to the 200-MA at 9250-9265 R2. Trade above 9265 looks to ignite short covering Stops for a secondary run to 9325-9350 up to 9500 R3 and R4 Targets.

Daily Chart:

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