With Crude Oil halting its recovery at the 83.64 level and taking back its Tuesday gains in today's trading session, risk of a resumption of its medium term downtrend is now shaping up. Pressure is building up on the 77.11 level, its Sept 26'2011 low and an eventual violation of that level will trigger further weakness towards the 76.61 level, its Aug 09'2011 low. Below here if seen will pave the way for resumption of its medium term downtrend (started from the 115.46 level) towards the 74.41 level, its Sept'2009 low. Further down, support lies at the 72.50 level, its July'2009 low. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, the commodity will have to climb back above the 90.69 level to reverse its present bear threats and bring further strength towards the 94.13 level, its Aug 03'2011 low and subsequently the 100.62 level, its July 26'2011 high. All in all, Crude Oil remains vulnerable to the downside in the medium term.
Commodity