Nymex Crude Oil (CL)
Crude oil’s corrective rebound from 67.05 should have completed at 72.9 already. Intraday bias remains mildly on the downside for 67.05 support first. Break will confirm that whole decline from 75.0 has resumed and should target 100% projection of 75 to 67.05 from 72.9 at 64.95 next. On the upside, above 69.81 will turn intraday outlook neutral again and bring recovery. Nevertheless, break of 72.90 is needed to indicate resumption of rise from 67.05 Otherwise, risk will remain mildly on the downside.
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