Midday Report : Crude Oil Futures for November Settlement
The bullish wave extended this morning after breaching the falling wedge formation last week - shown on the chart- and the commodity is approaching the major 85.00 level. Near the current levels there are some technical barriers that may halt the upside move at least temporarily, where the 61.8% Fibonacci retracement of the whole bearish wave starting from 90.00 area toward 75.00 lows along with the 50 days SMA are located near 85.00. Accordingly we expect an intraday downside pullback targeting mainly 83.00. Stochastic is clearly overbought supporting the possible downside move. A four-hour closing above 85.60 may delay the pullback and extend the bullishness towards 87.40.
The trading range for the week is among the major support at 77.00 and the major resistance at 87.50.
The short-term trend is to the downside with steady daily closing below 100.00 targeting 65.00.
| Support | 83.30 | 82.80 | 81.50 | 79.60 | 78.50 |
| Resistance | 85.00 | 87.00 | 87.50 | 88.20 | 89.60 |
| Recommendation | Based on the charts and explanations above we recommend selling oil around 85.00 targeting 83.00 and 81.50. Stop loss with four-hour closing above 85.60 | ||||
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