Nymex Crude Oil (CL)
Crude oil drops further to as low as 84.58 so far and intraday bias remains on the downside for further decline. THe break of 85.11 support serves as an early signal of medium term reversal. Current fall from 92.84 should now be targeting medium term rising channel support (now at 82.10) next. On the upside, break of 87.90 is needed to signal short term bottoming. Otherwise, outlook will now stay cautiously bearish.
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
Nymex Crude Oil Continuous Contract Daily Chart