Nymex Crude Oil (CL)

Crude oil rises strongly to as high as 82.09 so far today and takes out mentioned 80.45 projection target. Intraday bias remains on the upside and current rally should now target 100% projection of 64.23 to 79.38 from 71.09 at 86.24 next. On the downside, below 79.71 minor support will turn intraday bias neutral and bring consolidations. But break of 75.90 support is needed to indicate that crude oil has topped out. Otherwise, short term outlook will remain bullish.

In the bigger picture, there is no change in the view that rise from 64.23 is a correction to fall from 87.15 only. Hence, even in case of further rally, we'd expect strong resistance below 87.15 high and bring reversal. On the downside, break of 71.09 will be the first signal that whole fall from 87.15 is resuming for another low below 64.23 towards 50% retracement of 33.2 to 87.15 at 60.18