Weekly Report: Geometry Of Global Financial Markets

Crude Oil is primed to resume its daily uptrend and longer-term eyes the $75-$87 range. For that it needs to close and stay above geometric resistance (now turned support) of $54.90.

Russell 2000 Index is potentially finished consolidating, but requires a weekly close above 1,499.06.

TASI (Saudi Stock Exchange) displays bullish potential during the current consolidation, but must continue to stay above the recent low of 6,772.12 to have a chance of an eventual bullish trigger.

Walmart reaches parabolic topping area and time, with harmonic support at both $95.90 and $90.20.

General Electric (update) has broken below aligned support angles and now heads toward the $10 support area, unless it is stopped first by $14.40 support.

Bitcoin (update) reached price target only two trading days off initial target, after bottoming right on harmonic circular support. Both higher and lower price targets are presented geometrically.

CRUDE OIL (CL SPOT)

Important November geometric resistance of $54.90 was broken to the upside on November 3 and then tested as support and held on November 14-16. This is bullish behavior.

If crude finishes the month above $54.90, the bull trend should continue.

On the other hand, if price breaks below $54.90 a deeper retracement is much more likely.

Upper resistance levels are from $69 to $85, as given by wave interference patterns shown in the charts below.

On November 3, crude oil broke above resistance of $55.24 from the high of the first week of this year. Perhaps even more important is the simultaneous breakout of resistance at the confluence of two wave interference patterns:

Wave interference patterns are generated from the intersection of two (or more) sets of concentric circles interacting (emanating, usually from an important reversals), akin to dropping two stones into a pond.

The line patterns shown here (solid lines) are made by connecting such intersections using specific relationships: 1×1 (black) and 4×1 (brown). Although line patterns can start anywhere, the examples shown are selected due to their alignment with price.

While crude is still recovering from the major low of Jan./Feb. 2016, formed at the 4×1 pattern (brown), this month it managed to cross above resistance at $54.90, from the critical mid-line (black dashed angle). Note previous resistance from this mid-line at point B, causing the final leg of the downtrend to support. However, the month is only half-finished. Time will tell if the month closes above $54.90.

Note the double-top at the black resistance pattern of 1×1, whose continuation downward shows potential resistance around $75-$87, at the time the current market may reach it. But, the $75 price level of the 1/2 point (dashed black horizontal) stands in the way of a full recovery back up to the resistance curve. Notice its prior effectiveness as support at point A.