Crude Oil Daily Technical Outlook

Written by Oil N' Gold | Fri Aug 28 09 06:44 ET
Nymex Crude Oil (CL)

Crude oil's retreat from 75.0 was contained at 69.83 and recovered. With 4 hours MACD crossed above signal line, such retreat should have completed and intraday bias is flipped back to the upside. Further rise should be seen to 75.0 and then long term fibonacci resistance at 76.77 (38.2% retracement of 147.27 to 33.2). On the downside, below 69.83 will bring fall resumption. Also, consider that 75.0 was close to an important long term fibonacci resistance at 76.77 and some loss of momentum seen in 4 hours MACD, break of trend line support (now at 67.53) will suggest that rise from 58.32 has completed and turn focus to 65.23 support for confirmation.

In the bigger picture, there is no change in the view that rise from 33.2 is a correction to whole down trend form 147.27. Hence, strong resistance is expected as crude oil enters into 76.77/90.24 fibo resistance zone (38.2% and 50% retracement of 147.27 to 33.2) and bring reversal finally. On the downside, break of 65.23 support will now be an important signal that crude oil has already topped out and will turn focus back to 58.32 key support for confirmation.