Morning Report: crude oil futures for December settlement
Crude reversed sharply to the downside after reaching around the resistance at 89.80, and also after the expected and limited incline seen yesterday and mentioned in our report. Currently, oil returned to trade below the intraday critical barrier at 86.00, which means that the pair is also trading below the main descending resistance shown above in black, and also below the critical support of the minor upside movement, and finally below 23.6% Fibonacci correction as shown above. We expect the downside movement to extend towards 84.05 at least, but consolidation below 87.85 is required, yet we will remain neutral today due to the high risks associated with our negative expectations.
The trading range for today is among the major support at 80.55 and the major resistance at 90.40.
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 remain neutral awaiting more confirmations|