Crude Oil Daily Technical Outlook

Written by Oil N' Gold | Thu Aug 13 09 07:12 ET
Nymex Crude Oil (CL)

Crude oil's retreat was contained at 68.71 and recovered. Break of 71.32 minor resistance flip intraday bias back to the upside and further rally should be seen to test 73.38 resistance first. Break will confirm medium term rally resumption for 38.2% retracement of 147.27 to 33.2 at 76.77. On the downside, below 68.71 will bring another fall but after all, as long as 62.70 holds, we'd still favor another rise that should eventually send crude oil through 73.38 resistance.

In the bigger picture, with crude oil staying inside medium term rising channel, we're still favoring the case that whole rise from 33.2 is still in progress. Hence, another rise rise towards 38.2% retracement of 147.27 to 33.2 at 76.77 is in favor. But after all, strong resistance is expected as crude oil enters into 76.77/90.24 fibo resistance zone and bring reversal finally. On the downside, break of 62.70 support will argue that crude oil has possibly topped out earlier than we thought and break of 58.32 support will now be an important signal that rise from 33.2 has completed.