Nymex Crude Oil (CL)

Break of 51.86 minor support indicates that an intraday top is in place at 54.66 and bias is flipped to the downside for the moment, targeting lower channel support at 50.52. Nevertheless, downside should be contained there and bring rally resumption. As discussed before, above 54.66 will target next key level of 60, which is close to 23.6% retracement of 147.27 to 33.5 at 60.34.

In the bigger picture, prior break of 50.47 resistance serves as an important signal that crude oil has finally bottomed out in medium term, on bullish convergence condition in daily MACD, after drawing support from 17.12/33.5 key long term support zone. Sustained trading above 50.47 confirms this case and open up the prospect of stronger rally towards next key level at 90.51 (50% retracement of 147.27 to 33.5 at 90.38). However, failure at the current level, followed by break of 42.08 cluster support will revive that case that rise from 33.55 is just part of a medium term sideway consolidation pattern and will put 33.55 low back into focus.

Nymex Crude Oil Continuous Contract 4 Hours Chart

Nymex Crude Oil Continuous Contract Daily Chart