Friday, May 28, 2010

Crude Oil Technical Outlook For Friday Morning

Crude oil rises further to as high as 75.72 so far today. Intraday bias remains on the upside and rebound from 64.24 is in favor to continue to 61.8% retracement of 87.15 to 64.24 at 78.39. On the downside, though, break of 71.23 minor support will indicate that such recovery is completed and will flip bias back to the downside for retesting 64.24 low.

In the bigger picture, prior break of 68.59/69.50 support zone affirms our view that whole medium term rebound from 33.2 has completed at 87.15 already, just ahead of 50% retracement of 147.27 to 33.2 at 90.24. Further decline should be seen to 50% retracement of 33.2 to 87.15 at 60.18 at least. Also, as rebound from 33.2 is viewed as as a correction to the whole correction that started at 2008 at 147.27, we'd anticipate a break of 33.2 low in the longer term. On the upside, decisive break of resistance at 78 level is needed to indicate that fall from 87.15 is completed. Otherwise, we'll stay bearish......Nymex Crude Oil Continuous Contract 4 Hours Chart.

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