While Crude Oil may be hesitating, it continues to hold on to its medium term bias and faces the risk of returning to its key resistance level at 103.38/72. This zone is very crucial to its medium term uptrend as a violation of there will turn attention to the 104.60 level, its May 11'2011 high. Further out, its major resistance resides at 114.81 level, its May'2011 high. Its higher time frame charts are supportive of this view. Alternatively, the risk to this analysis will be for the commodity to return to the 94.99 level where a breach will call for a run at the 94.13 level, its Aug 03'2011 low and then the 90.69 level, its Sept 07'2011 high. We may see a respite here turning the commodity back up but if this fails to occur, further declines should target the 84.22 level. All in all, Crude Oil faces the risk of climbing back above the 103.38/72 levels though hesitating.
Commodity