Crude Oil Weekly Technical Outlook
Nymex Crude Oil (CL)
Crude oil edged higher to 89.98 last week but failed to take out 90 psychological level and retreated again. Nonetheless, note that firstly, it's has taken out near term falling channel. Secondly, it seems to be well supported by 4 hours 55 EMA. Thirdly, daily MACD is staying well above signal line. The development argues that fall from 100.42 might be completed at 84.05 already. Further rise will be mildly in favor as long as 86.17 minor support holds. Strong rally would be seen to 93.66 resistance to confirm the bullish case. Though, below 86.17 will flip bias back to the downside for another low below 84.05.
In the bigger picture, current development suggests that price actions from 114.83 are a triangle consolidation pattern. Fall from 100.42 is likely the fifth and the last leg of such consolidation. Having said that, downside should be contained above 77.28 and bring an upside breakout eventually. Break of 110.55 will strongly suggest that whole rebound from 33.29 has resumed for above 114.83.
In the long term picture, crude oil is in a long term consolidation pattern from 147.27, with first wave completed at 33.2. The corrective structure of the rise from 33.2 indicates that it's second wave of the consolidation pattern. While it could make another high above 114.83, we'd anticipate strong resistance ahead of 147.24 to bring reversal for the third leg of the consolidation pattern.
Nymex Crude Oil Continuous Contract 4 Hours Chart
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