Written by Oil N' Gold | Wed Jul 29 09 06:36 ET
Nymex Crude Oil (CL)
Crude oil's pull back from 68.99 is still in progress and may extend further. However, downside is expected to be contained by 62.44 cluster support (61.8% retracement of 58.32 to 68.99 at 62.39) and bring rally resumption. Above 68.99 will target a retest of 73.38 high but initial resistance will likely be seen there. However, break of 62.44 will argue that rise from 58.32 has completed. Also, this will revive the case that crude oil's fall from 73.83 has not completed yet and will put focus back to 58.32 low.
In the bigger picture, the stronger then expected rebound from 58.32 and break of 66.25 resistance dampened the bearish view that whole rise from 33.2 has completed at 73.38. Also, considering that crude oil is still trading inside medium term rising channel despite earlier brief break, rise from 33.2 is possibly still in progress. Break of 73.83 high will confirm this case and should target 38.2% retracement of 147.27 to 33.2 at 76.77 next. On the downside, break of 58.32 low will revive the case that crude oil has topped out and will bring fall resumption to 54.66 key support next.
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