11/09/12 Update:

Yestrdays Crude pit session:

High:  85.70

Low:   84.22

Settlement:  85.09

As we watch crude trade in a downward channel on our daily charts.  We notice that the 84.00 to 84.50 are very important technical and fundamental levels we need to watch.  The short term options show prices going higher to the top of the trading range.   On the other hand we saw about 500 lots of the December 84.50 CALL traded yesterday with a really low Delta of about 25. The OVX was trading lower yesterday as well suggesting lack of follow through.  Something else to take note of in yesterday’s price action is that the December 81.00 to 82.00 CALL spread was traded over 200 times in open interest.

That said, keep a close eye on the 84.50 during today trading session.    An open above can possibly push us up to the highs or our range, in respect to OIL VIX

Tune in to our broadcast live from the NYMEX pit at 8:45am for more insight into today’s trading session and hear the trading action live as it unfolds!!    www.crudesquawk.com

Support:  84.50, 84.22, 84.05, 83.79, 83.63

Resistance: 85.11, 85.50, 85.70, 86.00, 86.50