Weekly Report (7-11 November): Crude oil futures for December Settlement
Based on the daily chart, and according to Elliot theory, we find crude is currently trading around critical levels of 50% Fibonacci correction of the Double Zigzag wave, which started from the top around 114.82. This correction at 94.90 represents a critical barrier, which determines the continuity of the upside move towards 61.8% Fibonacci correction at 99.60, or the start of a new correctional wave. In case crude was able to settle above 94.90 then breach 95.15, we could see the extension of the upside move towards 97.70 and then 99.60. But, a failure to breach any of the mentioned levels could indicate that crude may start a downside correction.
The trading range for this week is among the major support at 89.60 and the major resistance at 99.60.
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 our opinion is buying crude with a breach of 95.15 and take profit in stages at (96.30 and 97.70) and stop loss below 93.50 might be appropriate.|