Crude oil retreats after hitting as high as 86.39 but at this point, intraday bias remains cautiously on the upside for 87.09 resistance. As noted before, choppy correction from 87.09 has possibly completed at 82.51 already. Break of 87.09 will confirm rally resumption for 90 psychological level next. On the downside, however, below 84.20 minor support will argue that correction from 87.09 is still in progress and flip intraday bias back to the downside for another test on 82.51. Though, strong support should be seen from 61.8% retracement of 78.56 to 87.09 at 81.82 to conclude the correction and bring rally resumption.
In the bigger picture, medium term rise from 33.2 is still in progress and could extend further higher. Nevertheless, there is no change in the view that it's the second wave of the whole correction that started in 2008 at 147.27. Hence, we'd continue to expect strong resistance near to 50% retracement of 147.27 to 33.2 at 90.24 to bring reversal. On the downside, below 78.56 support will be the first signal of topping and will turn focus back to 69.50 support for confirmation.....
Nymex Crude Oil Continuous Contract 4 Hours Chart.
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