Weekly Report: Crude oil futures for November settlement

Over 4-hour basis and according to Elliot theory, crude faces a Double Zigzag wave, which ended at the bottom Y around $74.95 a barrel. Furthermore, oil was able to breach the main descending resistance from the top of the pattern which passed through the top (X). This breach signals a possible bullish move -which might have a number of possibilities yet mostly still bullish- therefore, we expect an upside movement this week, initially towards the top of point (b) of the Double Zigzag pattern as shown above with the red arrow.

The trading range for this week is among the major support at 82.85 and the major resistance at 91.70.

The short-term trend is to the downside with steady daily closing below 100.00 targeting 65.00.

Previous Report

RecommendationBased on the charts and explanations above our opinion is buying crude around 87.10 and take profit in stages at (89.20 and 90.15) and stop loss with daily closing below 85.20 might be appropriate.