Wednesday, May 12, 2010
Crude Oil Daily Technical Outlook Wednesday Morning
Crude oil is still staying in tight range above 74.51 as consolidation continues. Intraday bias neutral and more sideway trading could still be seen. But after all, even in case of another rise, upside should be limited by double top neck line (80.53) and 4 hours 55 EMA (now at 79.35) 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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