November Crude Oil: Crude oil climbed on Tuesday as the 8500 area provides near term Support, gaining $1.11 to settle at 8692 basis the November contract. Despite the rise in price, the market remains vulnerable to the downside on trade below 8770-8815 near term Resistance. Only a flip above 8815 calls for follow through on Tuesday's rallies. All that being said, we have a Moderate Bear Bias barring today's DOE report.

Heading into the pit session open we will take an initial sell rallies approach looking to short the 8660-8692 R1 Pivot/Settlement Resistance zone, Stops above 8710 suggested. A secondary short trade can be taken within the 8770-8815 R2 Resistance zone, Stops above 8830 suggested. Take some risk off against 8600 S1 Support. A break of 8600 will aim to retest the weekly lows at 8500-8479 S2 Support. A drop to new weekly lows opens up the downside to solid momentum drives bringing 8400 S3 to 8320-8295 S4 Support targets into play for the session.

On the upside, buyers can take light scalps against 8600 S1 Support and on a retest and hold of 8500-8490 S2 Support. Stop out 16 cents below the low of each respective zone. Near term Bull target range is 8660-8692 R1 and 8770-8815 R2. The upside flip above 8815 shifts tides to the Bulls and targets 8900 R3 to 8960-9000 R4 while setting the stage for a burst back to last week's highs at 9052-9070 upper R5 target.

Daily Chart:

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