Crude Oil Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 10/27/09

Nymex Crude Oil (CL)

Intraday bias in crude oil remains neutral for the moment as sideway trading continues. Nevertheless, as long as 77.61 minor support holds, consolidation should be relatively brief and a break of 82, will bring rally resumption towards 50% retracement of 147.27 to 33.2 at 90.24. However, note that a break of 77.61 will indicate that a short term top is at least formed with bearish divergence conditions in 4 hours MACD and RSI. In such case, deeper decline should then be seen to 75 resistance turned support first.

In the bigger picture, medium term rebound from 33.2, which is treated as a correction to whole decline from 147.27, might still be in progress. But after all, we expect such rebound to conclude inside resistance zone of 76.77/90.24 (38.2% and 50% retracement of 147.27 to 33.2). Hence, focus will remain on loss of momentum and reversal signal even in case of another rise. A break of trend line support (now at 69.14) will be the first signal of topping and further break of 65.05 will confirm and turn outlook bearish.

Nymex Crude Oil Continuous Contract 4 Hours and Daily Charts