Crude Oil Daily Technical Outlook

Written by Oil N' Gold | Thu Jun 25 09 07:11 ET
Nymex Crude Oil (CL)

Crude oil's consolidation from 66.25 is still is progress and is now pressing 4 hours 55 EMA at 69.31 level. Nevertheless, with 72.55 resistance intact, another fall is still in favor. Below 66.25 will indicate that correction from 73.23 has resumed. Considering that a short term top is formed at 73.32 with bearish divergence conditions in 4 hours MACD and RSI. Deeper decline could be seen to 38.2% retracement of 45.44 to 73.23 at 62.61 next.

In the bigger picture, while a short term top is formed at 73.23, there is no indication that rise from 33.20 has completed yet. Such rise is still in favor to extend to 38.2% retracement of 147.27 to 33.2 at 76.77, and possibly further to next key level of 90, (50% retracement of 147.27 to 33.2 at 90.23) . But as noted before, strong resistance should be seen there and at least from some deep pull back. Though, a break of 54.66 key medium term resistance turned support will argue that whole rise from 33.2 low has indeed completed and will turn outlook bearish for a retest of this low eventually.