Morning Report: : Crude Oil Futures November Settlement
After pushing to the upside yesterday testing the breached wedge formation numerously and just above our awaited 87.50 area, the commodity dropped sharply proving the reliability of the bearish formation -we mentioned in our previous reports-to hit our first target near 85.00 where the next important support resides at 83.00 area, while to the upside 85.00 should halt intraday attempts followed by the descending resistance of a minor descending channel -shown on image. More downside pressure is anticipated today targeting mainly 83.00 followed by 80.00 as the next major stop.
The trading range for the day is among the major support at 80.00 and the major resistance at 87.00.The short-term trend is to the downside with steady daily closing below 100.00 targeting 65.00.
|Recommendation||Based on the charts and explanations above we recommend selling oil around 85.70 targeting 83.30 and 80.00. Stop loss with four hour-closing above 87.00|