CRUDE OIL: The 98.26 Level Beckons

Having halted its corrective declines and turned higher, the risk is for Crude Oil to recapture the 98.26 level. As long as Crude Oil continues to hold above the 93.93/92.04 levels, there is risk of a recapture of the 98.26 level. A cut through here will call for a run at the 100.00 level followed by the 101.00 level. Its daily RSI is bullish and pointing higher supporting this view. The alternative scenario will be for Crude Oil to break below the mentioned trendline and then target the 92.04 level. Below here will aim at the 86.82 level. This is consistent with its broader downside bias though it will have to take out the 84.05 level and the 77.70 level to resume that trend. Below here will resume its medium term weakness towards the 75.50 level. All in all, Crude Oil continues to hold on to its medium term bias.