Nymex Crude Oil (CL)
More consolidations could be seen in crude oil above 83.85 temporary low. But still, with 87.90 resistance intact, outlook remains cautiously bearish and we'd expect another decline ahead. Prior break of 85.11 support is an early alert of reversal. Below 83.85 will target medium term rising channel support (now at 82.50) next. Nevertheless, break of 87.90 will indicate short term bottoming and flip bias back to the upside for a test on 92.84 high.
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