Wednesday, May 30, 2012

Let's Compare Notes....ONG Crude Oil Daily Technical Outlook

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If you are a regular reader here you know we like to include trade ideas and opinions from many different sources. Here's is the "Crude Oil Daily Technical Outlook" from the staff at ONG. They really take the emotion out of trading and stick to the facts. And the fact is, the bulls are in trouble here.

Crude oil's decline resumed by taking out 89.28 temporary low and reaches as low as 87.75 so far. 61.8% retracement of 74.95 to 100.55 at 88.55 is broken firmly, suggesting downside momentum is building up again. Deeper decline should be seen to 80 psychological level and then 74.95 support. On the upside, break of 92.21 resistance is needed to signal short term bottoming. Otherwise, near term outlook will remain bearish even in case of recovery.

In the bigger picture, price actions from 114.84 are developing into a three wave consolidation pattern. And, the third leg should have already started at 110.55. Deeper fall should eventually be seen to 74.95 low and possibly below. Though, we'd likely see strong support from 64.23 cluster level, 61.8% retracement of 33.20 to 114.83 at 64.38 and bring another medium term rise. Hence we'll look for reversal signal below 74.95.

Nymex Crude Oil Continuous Contract 4 Hour, Daily, Weekly and Monthly Charts

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