Crude Oil and Natural Gas Daily Technical Outlook

Nymex Crude Oil (CL)

Crude oil's rally extends to as high as 75.96 so far and intraday bias remains on the upside for the moment. Current rise is still expected to continue to 38.2% of 147.27 to 33.2 at 76.77 and break will target 80 psychological level next. On the downside, below 74.64 will turn intraday outlook neutral and bring retreat but downside should be contained by 70.74 support and bring rally resumption.

In the bigger picture, medium term rise from 33.2 is still in progress and could extend further. Nevertheless, strong resistance should be seen in 76.77/90.24 fibo resistance zone (38.2% and 50% retracement of 147.27 to 33.2) to conclude the medium term rise finally. On the downside, in case of pull back, break of 65.05 is needed to indicate that crude oil has topped out. Otherwise, further rise is still in favor.....crude oil charts.

Nymex Natural Gas (NG)

Natural gas' retreat from 5.12 is still in progress and intraday bias remains neutral for the moment. Some more consolidation could be seen but after all, short term outlook will remain bullish as long as 4.351 minor support holds. Above 5.120 will bring resumption of whole rise form 2.409 and should target 38.2% retracement of 13.64 to 2.409 at 6.7 next. However, considering bearish divergence condition in 4 hours MACD, break of 4.351 will indicate that a short term top is formed and will bring deeper pull back instead.

In the bigger picture, medium term fall from 13.69 is treated as part of the long term consolidation pattern that started at 15.78 back in 2005. The whole consolidation might have completed at 2.409 after meeting 100% projection of 15.78 to 4.593 from 13.69 at 2.50. We'll prefer the bullish case as long 55 days EMA (now at 3.94 holds) and expect the current rise from 2.409 to extend further to 61.8% retracement of 13.64 to 2.409 at 9.38 in medium term.....Natural Gas Charts.