Now that we've rolled to the December CL contract, it's time to have a look at updated support, resistance and target numbers on the daily chart. The labeled target just above 95 was derived by multiplying the September 7th high to the October 4th low by 1.272 and projecting upward from the low. If you check earlier articles, you'll see that our initial upside target on the November contract has already been met, and price is now hovering at the resistance right past that point.

Click on image to enlarge!

A close above this 89 resistance would invalidate the rhythm of the downtrend and imply that we’re switching to a pattern of higher highs/higher lows on the daily timeframe. If we see a pullback first, best if all Fibonacci support holds along with the 50 CCI holding above zero. That’s the bold red line in the indicator panel, currently reading 48. A bounce closer to zero would tell us that’s there’s sufficient momentum to violate the prior swing high and take out that bold red resistance and call the 95 target into play!

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