Weekly Report(26-30 September): Crude Oil Futures November Settlement
Examining the weekly chart this morning, the commodity ended last week slightly below the ascending channel (dashed line), if oil stabilizes below the channel to confirm the breach, it will be a sign that the current decline might be only the start for more, targeting 75.00, 70.00 and 67.00. Over daily basis and on the right hand side chart, we have seen oil trading uniformly within the descending channel, and successfully breached a rising wedge formation that lasted for more than a month suggesting more bearishness may be on the horizon.
The trading range for the week is among the major support at 70.00 and the major resistance at 83.00.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 80.00 targeting 77.70,75.75 and 71.00. Stop loss with four-hour closing above 80.30|