WTI S2 S1 CLOSE R1 R2 TREND
DAILY 8357 8441 8538 8677 8775 CONGEST LOWER
WEEKLY 7495 8230 8607 9030 9783 CONGEST
Daily Moving Averages: 21, 55, & 100: 87.15, 91.14, 90.43
Weekly Moving Averages: 21, 55, & 100: 90.49, 95.54, 94.93
We offered a neutral view for Dec on Tuesday and neutral is what we got.
However, the spreads continue to signal weakness. The yearly spread, Jan/red Jan has fallen below -4.00, which is a new low. This is not a positive sign for the bulls. It means there is a plenty of crude around and it is bidding for storage.
The potential negativity for Dec is revealed by its ability to remove 86.00 on an intraday basis. That is the minor upside pivot. Without Dec reclaiming a foothold above that level it is likely that it plops below 84.00.
There will be trend support at 84.40 that the bears will need to first break, but below 84.00 there are two strong support levels, 83.55 and then 82.30, the monthly trend.
The minor downside pivot that will give Dec a peak at the minor downside pivot will be with the busting of 84.90.
Although Dec will have minor resistance at 85.90, it is the key pivot at 86.80 that the bulls will need to break to feel emboldened.
We are a seller of the rally at 85.85 with a protective stop above 86.00. This is the more aggressive play and it is contemplated due to the late day weakness in equities.