Technically speaking, crude’s movement above our 3rd tier downtrend line could be a key development since our 3rd tier runs through November ’09 highs. Hence, crude could be in for a retest of 2009 highs in the near-future. That being said, the psychological $80/bbl area has proven to be a tricky trading zone in the past. Therefore, crude may need more positive fundamental developments to send the future beyond 2009 levels. As for the downside, crude has multiple uptrend lines serving as technical cushions along with 12/29 and 12/24 lows. Additionally, the psychological $80/bbl level may now serve as a cushion should it be retested.
Resistances: $80.98/bbl, $81.39/bbl, $81.74/bbl, $82.75/bbl, $83.18/bbl
Supports: $80.45/bbl, $79.93/bbl, $79.23/bbl, $78.68/bbl, $78.05/bbl
Psychological: $80/bbl, $75/bbl, November and 2009 highs