Crude Oil Daily Technical Outlook Wednesday Morning

Yesterday's consolidation was brief and was limited at 72.52. Recent decline resumed and drops to as low as 67.90 so far today. Intraday bias is back to the downside and further fall should be seen to 38.2% retracement of 33.2 to 87.15 at 66.54 next. on the upside, though, note that break of 72.52 resistance will indicate that a short term bottom is formed, possibly with convergence condition in 4 hours MACD, and bring stronger rebound.

In the bigger picture, the 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, break of resistance at 78 level is needed to be indicate that fall fro 87.15 is completed. Otherwise, we'll stay bearish.....Nymex Crude Oil Continuous Contract 4 Hours Chart.


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