CRUDE OIL (futures)remains vulnerable to the downside having reversed most of its Friday gains after staging a failed attempt on the upside on Monday. This has left risk towards its Feb 03'10 high at 78.01 where a halt is expected but if it snaps we could see further price declines towards its long term rising trendlinelocated at the 76.83.While Crude Oil holds and trades above the mentioned key supports we expect the commodity to stage another attempt on the 80.75 level. Further down, supports are located at the 73.08 level, its Feb 12'10 low and then its YTD low at 69.69.Its daily RSI is bearish and pointing lower supporting this view. On the upside, a break of the 80.85 level is required to create scope for further upside gains towards the 83.93 level with a break triggering the resumption of its medium term uptrend now on hold towards the 85.00 level and then its psycho level seen at 90.00.On the whole, though vulnerable, Crude Oil looks to recapture the 80.75 level while it holds above the 78.01/76.83 levels

Market Analyst
www.fxtechstrategy.com

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