ONG Focus | Technical |
Written by Oil N' Gold |
Sun Jan 08 17 09:54 ET
Crude Oil Weekly Technical Outlook
Nymex Crude Oil (CL)
Crude oil edged higher to 55.24 but lost momentum again. Upside momentum remains unconvincing with bearish divergence condition in 4 hours MACD. But near term outlook stays cautiously bullish as long as 49.94 support holds. Further rally should be sent to next fibonacci level at 57.27. However, break of 49.95 support will be an early sign of reversal and turn focus back to 42.40 support.
In the bigger picture, medium term rebound from 26.05 is still in progress for 38.2% retracement of 107.73 to 26.05 at 57.25. Such rise is still viewed as a corrective pattern and thus we'd expect strong resistance from 57.25 to limit upside. Break of 42.40 support will confirm completion of such rise. Price actions from 26.05 would develope into a sideway pattern then. However, sustained break of 57.25 will open up further rally to 55 months EMA (now at 64.21).
In the long term picture, crude oil should have drawn support from 17.12/37.0 support zone to form a medium term bottom at 26.05. We'd now expect a medium term to long term sideway pattern.
Nymex Crude Oil Continuous Contract 4 Hours Chart
Nymex Crude Oil Continuous Contract Daily Chart
Nymex Crude Oil Continuous Contract Weekly Chart
Nymex Crude Oil Continuous Contract Monthly Chart