Crude Oil Daily Technical Outlook

Written by Oil N' Gold | Thu Jun 04 09 06:39 ET
Nymex Crude Oil (CL)

Crude oil's retreat was contained at 64.95, supported by 4 hours 55 EMA and rebounded. Some more consolidation might be seen but after all, rise from 43.83 is still in favor to continue as long as near term rising channel holds. Above 90.05 will target 38.2% retracement of 147.27 to 33.2 at 76.77 next. Meanwhile, sustained break of the channel support will but the first signal that crude oil has topped out and will turn focus to 59.61 support for confirmation.

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).

However, note that crude oil is still struggling around both EMA for the moment. Below 56.07 will be the first signal that rebound from 33.2 has completed and will turn focus to channel support (now at around 50 level ) for confirmation. Break there will indicate that a medium term top is likely formed and Crude oil could then target prior low of 33.2 again.