Nymex Crude Oil (CL)
A temporary low is in place in crude oil at 86.03 and intraday bias is turned neutral for the moment. Some consolidations would possibly seen first but near term outlook remains cautiously bearish as long as 92.58/37 resistance holds. Recent development, with a break of 86.83 support, argues that whole rise from 70.76 has completed at 92.58 on bearish divergence condition in daily MACD. Below 86.03 should bring another fall to 80.06 support for confirmation.
In the bigger picture, whole medium term rise from 33.2 is still in progress. Such rally is treated as the second wave of the consolidation pattern that started at 147.27 (2008 high). 50% retracement of 147.27 to 33.2 at 90.24 is already met and there is no sign of reversal yet. Further rise could still be seen to 61.8% retracement at 103.70 and possibly above. On the downside, break of 80.06 support is needed to be the first sign of medium term reversal and break of 64.23 is needed to confirm. Otherwise, outlook will remain bullish.
Nymex Crude Oil Continuous Contract 4 Hours Chart
Nymex Crude Oil Continuous Contract Daily Chart