Saturday, November 12, 2011
ONG: Crude Oil Weekly Technical Outlook
In the bigger picture, the choppy corrective structure indicates that price actions from 114.83 are merely a correction, or part of a consolidation pattern to decline from 114.83. Such decline should have completed at 74.95 after being supported above 50% retracement of 33.2 to 114.83 at 74.02. That is, rise from 33.2 is not finished yet. Sustained trading above 100 psychological level will affirm this case and would likely send crude oil through 114.83 high. On the downside, break of 74.95 will revive the case that rise form 33.2 is already finished at 114.83 and will turn outlook bearish.
In the long term picture, crude oil is in a long term consolidation pattern from 147.27, with first wave completed at 33.2. The corrective structure of the rise from 33.2 indicates that it's second wave of the consolidation pattern. While it could make another high above 114.83, we'd anticipate strong resistance ahead of 147.24 to bring reversal for the third leg of the consolidation pattern.
ONG Crude Oil Continuous Contract 4 Hours, Daily, Weekly and Monthly Charts