Nymex Crude Oil (CL)

Intraday bias in crude oil remains on the downside for the moment. As noted before, sustained break of 85.11 will be an early signal of reversal and should bring deeper fall to medium term rising channel support (now at 82.0). On the upside, above 87.90 minor resistance will flip bias back to the upside and turn focus back to 92.84 high instead.

In the bigger picture, crude oil lost upside momentum as seen with mild bearish divergence condition in daily MACD. Current development argues that 92.84 might be an important top. Sustained trading below the mentioned medium term channel support will confirm this case and deeper decline would then be seen towards 64.23 key cluster support next (50% retracement of 33.2 to 92.84 at 63.02). On the upside, break of 92.84 is now needed to confirm rally resumption. Otherwise, risk will remain on the downside even in case of recovery.

Nymex Crude Oil Continuous Contract 4 Hours Chart

width=480

Nymex Crude Oil Continuous Contract Daily Chart

width=480