Morning Report: Crude Oil Futures for December Settlement
Oil rallied sharply to end yesterday's trading session above 101.00, invalidating the correctional bearishness we have been anticipating while price was below 100.00. The commodity surpassed the 61.8% Fibonacci correction level and is dangerously overbought at the current levels where risk is very high compared to the potential reward to the upside. Therefore, we will be waiting for pullbacks before jumping into any intraday bullish scenario.
The trading range for the day is among the major support at 99.00 and the major resistance at 104.75.
The short-term trend is to the downside with steady weekly closing below 105.00 targeting 65.00.
*The provided chart based on GMT+2*
|Recommendation||Based on the charts and explanations above we recommend buying oil around 100.00 targeting 101.50 and 103.50. Stop loss with four-hour closing below 99.00|