CRUDE OIL (futures): Crude Oil has broken and closed below its longer trendline and now looks to weaken further towards its Nov 25'09 low at 65.03. This is coming after several failed attempts on the upside since hitting a high of 81.95 in Oct'09. Though the said break is corrective, that has put a hold on its broader medium term uptrend started off the 33.66 level in Feb'09. Below the 65.03 level will pave the way for a run at the 62.68 level, its July 29'09 low and then its psycho level at 60.00. Both its daily and weekly studies are bearish and trending lower suggesting further downside. On the upside, a clean break back above its invalidated LT rising trendline is required to trigger further upmove towards the 79.86 level, its Nov 23'09 high with a cut through there aiming at the 81.95 level, its YTD high. Beyond that level will resume its medium term uptrend and bring further upside gains towards its 200 ema at 85.30. On the whole, with a violation of its medium term trendline seen, risk has now turned lower.
Daily Chart: CRUDE OIL
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