Crude Oil remains biased to the upside in the long term though currently hesitating ahead of its 2011 high at 92.57. This view remains valid while the commodity continues to hold above its rising trendline. An eventual break of the 92.57 level will resume its long-term uptrend towards the 95.00 level. On a further strength, focus will turn to its big psycho level at 100.00. We may likely see a turn lower from that level on an initial test because of the psychological importance of that level, but if it gives in, further gains should aim at the 104.38 level, its .618. Fib Ret. Conversely, to annul its current upside offensive, a break and hold below the 87.25 level must occur thus creating scope for further losses towards the 86.83 level, its Dec 15'10 high. A respite could be seen there. Further down, support lies at the 82.76 level, its Nov 26'10 low. All in all, with a continued hold on to its bullish recovery off the 73.78 level seen, risk is building towards the 92.57 level.
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