Nymex Crude Oil (CL)

Despite dipping to as low as 73.83, downside momentum in crude oil continues to diminish. Nevertheless, intraday bias remains mildly on the downside with 76.63 minor resistance intact. Current fall from 82.97 is still expected to continue to 71.09 support first. Break there will confirm that whole rebound from 64.23 has finished at 82.97 already and will bring deeper fall to retest this low. On the upside, above 76.63 will bring stronger recovery. But still, we'd expect upside to be limited well below 82.97 and bring another fall.

In the bigger picture, choppy rebound from 64.23 is treated as a correction to fall from 87.15 only and has possibly finished at 82.97 already. Break of 71.09 will affirm this case and indicate that whole fall from 87.15 is resuming for 60 psychological level, (50% retracement of 33.2 to 87.15 at 60.18, 100% projection of 87.15 to 64.23 from 82.97 at 60.05). Decisive break there will indicate that fall from 87.15 is developing into a powerful impulsive wave and would target 33.2 low. On the upside, even in case of another rise, focus will remain on reversal signal as crude oil enters into resistance zone of 82.97/87.15

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