Crude oil's rally extends further to 50.95 so far. At this point, intraday bias remains on the upside as long as 46.92 minor support holds. Focus will remain on whether crude oil can sustain above 50.47 resistance. If yes, it will pave the way to strong rally towards next key level of 60, which is close to 23.6% retracement of 147.27 to 33.5 at 60.34. On the downside though below 46.92 will indicate that rise from 33.55 has completed and will turn intraday outlook neutral first.
In the bigger picture, the break of 50.47 resistance serves as an important signal that crude oil has finally bottomed out in medium term, on bullish convergence condition in daily MACD, after drawing support from 17.12/33.5 key long term support zone. Sustained trading above 50.47 will confirm this case and open up the prospect of stronger rally towards next key level at 90.51 (50% retracement of 147.27 to 33.5 at 90.38).
Nymex Crude Oil Continuous Contract 4 Hours Chart
Nymex Crude Oil Continuous Contract Daily Chart