OPEC Appears to Be Amenable to an Output Cut on Nov 30. What is the Crude Oil Chart Saying About a Deal?

Positive news about an OPEC output deal propelled Oil to a new recovery-rally high at $49.20 overnight, but a sell-the-news reaction has since emerged, pressing Oil back to the $48.00-$47.80 area.

The weakness also is correcting the differential between the expiring Dec contract (as of yesterday PM) and the new front month January contract.

The differential will be completely closed if nearby Oil trades down to $49.50, which is considered important support.

Be that as it may, a pullback that finds support in the $48.00-$47.00 area, should be followed by another upleg that propels Oil to $50.70 to $52.00 next.

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