Morning Report:Crude Oil Futures for November Settlement

Oil is showing signs of weakness, as the commodity is failing to maintain the upside momentum, and this is well illustrated on Stochastic, where it formed a bearish divergence, we remind that we are trading below a major descending resistance and the 127.2% Fibonacci extension of the latest bearish wave. On the other hand daily closing remain above the 50 days SMA, therefore, we need a confirmation for the downside reversal to jump into the possible selloff.

The trading range for the day is among the major support at 82.00 and the major resistance at 88.50.The short-term trend is to the downside with steady daily closing below 100.00 targeting 65.00.

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RecommendationBased on the charts and explanations above we recommend staying aside awaiting more confirmations