Crude Oil Daily Technical Outlook

Written by Oil N' Gold | Tue Aug 04 09 07:25 ET
Nymex Crude Oil (CL)

Crude oil's rally extends further to as high as 72.20 before retreating mildly. Nevertheless, intraday bias remains on the upside as long as 69.51 minor support holds. Whole rise from 58.32 is still expected to continue to key cluster level at 73.38 with 100% projection of 58.32 to 68.99 from 62.7 at 73.36. On the downside, below 69.51 will indicate that an intraday top is in place and bring consolidation. But break of 62.70 support is needed to indicate that rise from 58.32 has completed. Otherwise, short term outlook will remain bullish.

In the bigger picture, whole medium term rebound from 33.2 is likely still in progress as crude oil is trading well inside rising channel from there. Current rise from 58.32 should be resuming such rebound and will likely make another high above 73.38, probably to 38.2% retracement of 147.27 to 33.2 at 76.77. But strong resistance will likely be seen as crude oil enters into 76.77/90.24 fibo resistance zone. Hence, we'd look for sign of reversal and loss of momentum as crude oil as the current rise continues. On the downside, break of 62.70 support will argue that crude oil has possibly topped out earlier than we expect and break of 58.32 support will now be an important signal that such medium term rise from 33.2 has already completed