August Crude Oil: Crude oil caught a solid bid on Tuesday, reversing Monday's losses and more to close up $2.28 at 9743. The close above 9600 set a moderately Bull bias, however, with the 51-day downtrend and 50-MA converging at 9815 R1 Resistance today, trade above there is needed for the Bulls to sustain near term control. A failure to top 9815, specifically if the DOE is not supportive of it, alerts for a Bearish turn today. Having said that, we have a Flat bias to start the session with the DOE expected to determine direction. We can anticipate prior to the report the Bulls will defend positions.

Heading into the pit session, buyers can lightly buy into dips against 9675 S1 Support and against 9615-9600 S2 Pivot Support with Stops suggested 16 cents below the low of each respective range. Initially scale out for Longs against 9743-9780 R1 to 9815 R2 Resistance targets. Trade above 9815 renews Bull strength launching rallies to Q3 high at 9915-9942 R3 up to the 10000 mark at R4.

On the downside, sellers can short the 9743-9780 R1 and 9815 R2 Resistance zones with Stops suggested 16 cents above the high of each respective zone. If 9815 is not taken out post DOE report, look to trail positions lower targeting 9565-9540 S3. Trade below 9540 clears the way to the lower end of yesterday's range with targets at 9450-9415 S4 and 9365-9345 S5.

Daily Chart:

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