The commodity followed through lower on the back of its past week losses to break below the 87.25 level on Tuesday. This has put Crude Oil in a position to even weaken further towards the 86.00 level. A respite could be seen there. Further down, support lies at the 82.76 level, its Nov 26'10 low. Alternatively, on pullbacks, the 87.25 level will be targeted where a reversal of roles is likely to occur and turn the commodity lower. Further out, resistance is seen at the 90.21 level, its Jan 21'2011 high with a loss of there turning attention to its 2011 high at 91.31. A clearance of that level is required to resume its long term uptrend now on hold and then open the door for more strength towards the 95.00 level and its big psycho level at 100.00. We may likely see a turn lower from that level on an initial test because of its psychological importance. All in all, further downside risk remains.
CRUDE