Crude oil's recovery from 77.11 temporary low might extend further high. But in any case, we'll stay bearish as long as 90.52 resistance holds. We are still favoring the case that whole decline from 114.83 is ready to resume and break of 77.11 should send crude oil through 75.71 support to 70 psychological level next.
In the bigger picture, medium term rebound from 33.2 is treated as the second leg of consolidation pattern from 147.24 and should have finished at 114.83 already. Current decline should target next key cluster support at 64.23 (61.8% retracement of 33.2 to 114.83 at 64.38) next. Sustained break will pave the way to retest 33.2 low. On the upside, break of 90.52 resistance is needed to invalidate this view or we'll stay bearish in crude oil now.
Posted courtesy of Oil N' Gold.Com
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