Crude Oil Weekly Technical Outlook
Nymex Crude Oil (CL)
Crude oil stayed in established range of 84.05/89.90 last week. The corrective nature of the price actions from 84.05 so far argues that that it's merely a consolidation pattern. That is, fall from 100.42 isn't over yet. Hence, while stronger recovery could be seen as the consolidation continues, we'd expect upside to be limited by 50% retracement of 100.42 to 84.05 at 92.24. ON the downside, break of 84.05 will now target 77.28 support.
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.
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