Written by Oil N' Gold | Tue Sep 01 09 07:48 ET
Nymex Crude Oil (CL)
Crude oil's break of 69.83 minor support suggests that fall from 75 has resumed. At this point, intraday bias is turned back to the downside with focus on near term trend line support (now at 68.21). Break there will indicate that whole rise from 58.32 has indeed ended at 75.0 already. Further break of 65.23 will confirm this case and target 58.32 support next. On the upside, above 73.57 resistance will in turn indicate that fall from 75.0 has completed with a three wave structure, which in turn indicate that rise from 58.32 is still in progress for next long term fibonacci resistance at 76.77 (38.2% retracement of 147.27 to 33.2).
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.
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