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Crude Oil Daily Technical Outlook
Wed, Jan 14 2009, 11:20 GMT
by Oil N' Gold Team
Oil N' Gold
Nymex Crude Oil (CL)
With 4 hours MACD crossed above signal line, an intraday low should be in place in crude oil and some consolidation would be seen for the moment. Nevertheless, recovery should be limited by 43.86 resistance and bring fall resumption to retest 34.98 low. Break will confirm that medium term down trend is resuming. On the upside above 43.86 will turn short term outlook neutral and put focus back to 50.47 resistance.
In the bigger picture, failure to sustain above 50.05 resistance dampens the case that a medium term bottom is formed at 34.98. With medium term trend line resistance intact, there is no confirmation of completion of the down trend neither. Break of 34.98 will indicate that such down trend from 147.27 has resumed for lower end of the current medium term support zone at 25.04.
On the upside, however, a break above 50.47 will firstly indicate that rise from 34.98 has resumed. More importantly, the possible head and shoulder bottom formation (ls: 40.50, h, 34.98, rs: ?) will revive that case that a medium term bottom is formed. Strong rally should be seen in such case which should take out the mentioned trend line resistance with ease and should target 90.51 medium term support turned resistance (50% retracement of 147.27 to 24.98 at 91.25)
Nymex Crude Oil Continuous Contract 4 Hours Chart and Daily Chart
Published on
Wed, Jan 14 2009, 11:21 GMT
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