Nymex Crude Oil (CL)
Crude oil’s break of 71.60 resistance suggests that fall from 75.0 is merely a correction in the larger rally and should have completed at 67.34 already. Intraday bias is turned back to the upside and further rise should now be seen to 75.0 first and then long term fibonacci resistance at 76.77 (38.2% retracement of 147.27 to 33.2). ON the downside, below 68.96 will in turn suggest that fall from 75.0 is still in progress and break of 67.43 will target 65.23 support next.
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