Weekly Report (7-11 November): Crude oil futures for December Settlement

technical analysis,crude,oil,support,resistance,upside,downside

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.

Previous Report

Support94.0093.5092.4592.0091.20
Resistance95.1596.3097.0098.0099.60
RecommendationBased 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.