Monday, May 10, 2010
Crude Oil Daily Technical Outlook For Monday
Crude oil's strong recovery today suggests that a temporary low is formed at 74.51 and turns bias neutral. Some consolidations would probably be seen. However, strong resistance should be seen at double top neck line (80.53) and 4 hours 55 EMA (now at 80.84) to limit upside and bring fall resumption. On the downside, break of 74.51 will target 69.50 key support next.
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.
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