 Good morning and welcome to CMC markets on Tuesday the 1st of November in this quick look at the markets And I'm paying particular attention today to Oil prices in the wake of yesterday's sharp decline to one month lows of Brent and WTI prices Also going to have a quick look at the FTSE 100 and also have a quick look at the pound against the dollar after last night's rally on the back of the news that Bank of England Governor Mark Carney will be staying until the summer of 2019 but let's start off with Brent crude prices and that sharp decline that we saw last night appears to have found some support at that long-term trend line that I've Keep been keeping an eye on now for several weeks from the lows that we saw earlier this year in January 2016 so at the moment we're still in this uptrend but I think this uptrend has predicated an awful lot of expectation about what OPEC may or may not do By the end of this month and this agreement that they arrived at in our Gears at the end of September to freeze or cap production now ultimately the center does not appear to be holding here and At the moment we do appear to be finding a significant area of resistance between 52 and 53 dollars a barrel and Thus far we're not really seeing any evidence whatsoever that is likely to change Particularly if we look at the weekly chart We can also see that there's potential for a very very strong downward thrusts in the oil price over the last two weeks the picture becomes Slightly more bearish if you actually look at it in the context of a candle chart here in this candle here Is but it's potentially quite bearish But even of itself it doesn't scream conclusively the oil prices are looking particularly toppy Simply because of the fact that the rebound has only really taken place over the course of the last Five or six months. It's a similar sort of story on the WTI again similar sort of Price setup again. We're still above the trend line support from the lows that we saw In February in this case. We're well above the support. So at the moment the momentum still favors an Upward movement in oil prices until such times as both contracts break lower Now we did see a bearish engulfing day in the middle of October if we look at the weekly chart It also looks fairly bearish, but once again while we're above this uptrend line there is scope for Rebounds in the oil price while we're above these key levels I think what's more worrying is the fact that the footsie 100 does appear to be showing some signs of Exhaustion particularly at the levels that we're seeing right now Certainly, I think since we saw the lows in June. We have gone in a fairly orderly fashion. We've we've moved Very very slowly higher But what we're seeing here is a little bit concerning because what we've seen since the peaks in October around about 7120 is a Very significant lackluster rebounds in the price action and if we actually look at the monthly chart and Look at the candle there that That is a that is potentially worrying. That's potentially a grey stone doji We're not quite there yet And certainly there is scope for us to try and rebound back through seven thousand But unless we get back above seven thousand and thirteen very very soon I would be concerned that we're going to probably tick back down Towards that six thousand eight hundred level that very long upper shadow on the candle there is a very Is a significant worry for me because we weren't as able to sustain the levels above seven thousand seven thousand one hundred Which suggests that potentially maybe the market is getting a little bit tired at these sorts of elevated levels Gonna finish up with the pound against the dollar because we've seen a decent rebound over the course of the past 24 hours From loads of around about 121 that does appear to be a significant base around between 120 90 and 121 Through here, but we are currently struggling to get back significantly through the 122 70 area and that's really the the area that I'm targeting To really suggest that we're going to get a stabilization in the pound against the dollar what I would hope to see here is a move through 122 70 and through these peaks here in the middle of October round about 123 30 to really argue for a move back towards these mid-October peaks around about 125 124 125 That sort of area which is really what I'm looking for for a bit of a stabilization at the moment We do appear to have found I think a little bit of a new range The lower end of that range is around about 120 80 the upper end is around about 123 so I think we need to see a push through 123 to suggest a retest of 125 So that's it for today. Thanks very much for listening. This is Michael Houston talking to you from CMC markets