Wednesday, April 14, 2010

Crude Oil Daily Technical Outlook Wednesday Morning

With 4 hours MACD crossed above signal line, the choppy pull back from 87.09 might have completed at 82.51 already. Intraday bias is cautiously on the upside for the moment and crude oil should target a retest of 87.09 first. Break will confirm rally resumption for 90 psychological level next. On the downside, while another fall cannot be ruled out, we'd continue to expect strong support from 61.8% retracement of 78.56 to 87.09 at 81.82 to conclude the correction and bring rally resumption.

In the bigger picture, medium term rise from 33.2 is still in progress and could extend further higher. Nevertheless, there is no change in the view that it's the second wave of the whole correction that started in 2008 at 147.27. Hence, we'd continue to expect strong resistance near to 50% retracement of 147.27 to 33.2 at 90.24 to bring reversal. On the downside, below 78.56 support will be the first signal of topping and will turn focus back to 69.50 support for confirmation.....Nymex Crude Oil Continuous Contract 4 Hours Chart.

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