Crude Oil Daily Technical Outlook Wednesday Morning

Yesterday's recovery suggests that consolidation from 64.24 is still in progress and intraday bias is turned neutral. While further rise cannot be ruled out, we'd expect strong resistance at 38.2% retracement of 87.15 to 64.24 at 72.99 to limit upside and bring fall resumption finally. Break of 64.24 should target 60 psychological level next, which is close to 50% retracement of 33.2 to 87.15 at 60.18.

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 from 87.15 is completed. Otherwise, we'll stay bearish.....Nymex Crude Oil Continuous Contract 4 Hours Chart.

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