Crude Oil Daily Technical Outlook

Written by Oil N' Gold |
Nymex Crude Oil (CL)

Crude oil's rally is still in progress and extends further to as high as 68.29 so far, and at this point, intraday bias remains on the upside as long as 66.24 minor support holds. Sustained break of 55 weeks EMA at 67.32 and 55 months EMA at 68.98 will set the stage for further rise to 38.2% retracement of 147.27 to 33.2 at 76.77 next. On the downside, below 66.24 will turn intraday outlook neutral and bring consolidation. But break of 59.61 support is needed to suggest that crude oil has topped out. Otherwise, short term outlook remains bullish.

In the bigger picture, the question remains on whether the rise from 33.2 represent reversal in trend in crude oil, or it's merely a correction in the larger down trend. But in any case, rise from 33.2 should still be in force as long as 56.07 support holds. Sustained trading above mentioned 55 weeks and 55 months EMA will pave the way to stronger rally to 38.2% retracement of 147.27 to 33.2 at 76.77 next, with prospect of extending to key cluster level at 90, (90% retracement at 90.23). On the downside, below 56.07 will be the first signal that rebound from 33.2 has completed and will turn focus to channel support (now at 53.16) for confirmation.