Nymex Crude Oil is likely to consolidate with risks skewed to the downside after failing Thursday to break resistance at Wednesday’s nearly eight-month high of $103.74/bbl before settling down $1.41 at $101.81/bbl, Dow Jones technical analysis shows. The daily continuation chart is mixed as the MACD indicator is bullish, but the stochastic measure is turning bearish at the overbought level, while a bearish-engulfing candlestick pattern was completed Thursday. Support is at the overnight low of $101.30; a breach would expose downside to $99.65 (Tuesday’s low), then to $98.61 (Dec. 30 low), $98.30 (Dec. 29 reaction low), $96.99 (55-day moving average), $96.80 (Dec. 21 low) and $95.73 (200-day moving average). But a rise above the $103.74 resistance would reinstate the near-term positive bias, targeting $104.60 (May 11 reaction high), then $105.31 (previous base set April 13)–after which there’s no significant resistance until the psychological $110 line. February crude is down 34 cents at $101.47/bbl on Globex.
EasyForexNews Research Team