Morning Report: Crude Oil Futures for November Settlement
We got slapped by volatility yesterday, although we expected-in yesterday's morning report- big swings among a range-trading phase; our entry point wasn't optimum enough. Anyhow, the overall bearish outlook has not invalidated yet, the 85.00 resistance level is limiting any upside attempt for the commodity. Currently, stochastic is attempting to cross over negatively where price is testing the 50 period SMA again; therefore, we continue to expect more downside attempts, and volatility to continue as well.
The trading range for the day is among the major support at 85.00 and the major resistance at 80.00The 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 84.50 targeting 83.00 and 82.00. Stop loss and reverse order with four-hour closing above 85.00 targeting 86.50 and 88.00, stop loss with four hour closing below 84.00|