CRUDE OIL: Susceptible To The Downside

CRUDE OIL: With the commodity maintaining its weakness initiated from the 79.92 level, its Jun 21'10 high after a sharp decline the past week, threats continue to build to the downside. In such a case, its Jun 07'10 low at 69.62 will come in as the initial support with a violation of there targeting its 2010 low at 67.14. We expect either the former or the latter to reverse roles and provide support thus turning Crude Oil higher again. Its weekly RSI is bearish and pointing lower supporting its downside tone. Alternatively, a return above the 75.69 level, its May 28'10 high and the 79.92 level, its Jun 21'10 high must be established to annul its current weakness and bring the resumption of its nearer term uptrend towards its psycho level at 80.00. A violation of that level will clear the way for more pressure towards the 81.28 level, its April 28'10 low. Overall, Crude Oil remains vulnerable to downside having lost upside momentum at the 79.92 level.