Nymex Crude Oil (CL)
Crude oil’s consolidation from 67.43 is still in progress and further recover cannot be ruled out. But still, another fall is still in progress as long as 71.60 resistance holds. Break of 67.43 will indicate that fall from 75.0 has resumed for 65.23 support next. Break there will confirm the case that whole rise from 58.32 has completed and will bring deeper fall to test this key support level. On the other hand, strong rebound above 65.23, followed by break of 71.60 resistance will suggest that fall from 75.0 is a correction only and rise from 58.32 is still in progress. Intraday bias will then be flipped back to the upside for a 75.0 and then long term fibonacci resistance at 76.77 (38.2% retracement of 147.27 to 33.2)
In the bigger picture, there is no change in the view that rise from 33.2 is a correction to whole down trend form 147.27. Question remains on whether such rally has completed at 75.0 already. Crude oil is now at important medium term trend line support. Sustained trading below will be the first alert that such rise has finished. Break of 58.32 will confirm this case and turn outlook bearish for 33.2 low next. On the upside, while another rise cannot be ruled out for the moment, strong resistance is expected as crude oil enters into 76.77/90.24 fibo resistance zone (38.2% and 50% retracement of 147.27 to 33.2) and bring reversal finally.
Nymex Crude Oil Continuous Contract 4 Hours Chart
Nymex Crude Oil Continuous Contract Daily Chart