Written by Oil N' Gold | Tue Aug 25 09 07:21 ET
Nymex Crude Oil (CL)
Crude oil lost some upside momentum with 4 hours MACD crossed below signal line. Nevertheless, another rise is still in favor with 71.75 minor support intact. Current rise from 58.32 is still expected to extend to next long term fibonacci resistance at 76.77 (38.2% retracement of 147.27 to 33.2) next. On the downside, though, break of 71.75 will turn short term outlook neutral and raise the odds that rise from 58.32 has completed. Focus will then be turned to 65.23 support.
In the bigger picture, recent development indicates that rise from 33.2 is still in progress. Nevertheless, there is no change in the view that such rise from 33.2 is a correction to whole down trend form 147.27. Hence, stronger 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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