December Crude Oil consolidated within the previous day’s range on Thursday, November 10, 2016. Wednesday’s wide range candle had Crude Oil trading down to support at 43.07 and up to 45.95 as traders reacted to the results of the presidential election held on Tuesday. Thursday’s action saw Crude Oil test Wednesday’s high during the night session, reaching 45.64 before failing and grinding lower the remainder of the trading session. It settled at 44.66 and ended the day at 44.29. For the moment, OPEC is on the back burner as traders are trying to decide whether Donald Trump’s pro US production stance will be bearish or bullish for crude oil prices. Trade will continue to be volatile as we go through the transition from President Obama to President Trump and markets will react to any comments on future crude oil policy. OPEC has been quiet lately as they try to come to an enforceable agreement on a production freeze/ cut. Their semi-annual meeting is at the end of the month and they have stated they will have a production policy in place in order to stabilize crude oil prices. We’ll see… A breakout from Thursday’s inside candle low (44.25) could lead to a test of support at the 200 DMA at 43.63. Getting below the 200 could lead to a test of support at 43.07. Support then follows at 42.47 and then 42.10. Resistance is at 44.78 (8 DMA), 45.39 and then a breakout above the inside candle high could lead to a test of the 100 DMA at 46.26.
High 45.64
Low 44.25
Last 44.29
Daily Pivots for 11/11/16:
|
R2 |
46.12 |
|
R1 |
45.20 |
|
PIVOT |
44.73 |
|
S1 |
43.81 |
|
S2 |
43.34 |
|
|
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Senior Market Strategist
Walsh Trading, Inc.
RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.
