Friday, May 7, 2010
Crude Oil Daily Technical Outlook For Friday
Crude oil dropped to as low as 74.59 and formed a temporary low there and recovered. Intraday bias is turned neutral for the moment and some consolidations might be seen. But upside should be limited below 61.8% retracement of 87.15 to 74.59 at 82.35 and bring fall resumption. On the downside, below 76.56 minor support will flip intraday bias back to the downside. Break of 74.59 will target a test on 69.05 key support.
In the bigger picture, as noted before, 33.20 is viewed as a correction to the whole correction that started at 2008 at 147.27. Such rise might have completed at 87.15 already, ahead of 50% retracement of 147.27 to 33.2 at 90.24. Break of 69.50 support will break the series of higher low pattern from 33.2 and will be an important indication that the trend has reversed. In such case, we'll turn bearish on crude oil and expect the then down trend to target a new low below 33.2.....Nymex Crude Oil Continuous Contract 4 Hours Chart