The commodity's continued struggle to form a bottom ended the past week following a break out of its triangle pattern pushing it through the 94.63 level. This technical development has left Crude Oil targeting further declines towards its Feb 21'2011 low at 91.27 with a break below that level allowing for more weakness towards its long term rising trendline dating back to 2009 at 87.27. Its weekly and daily RSI are bearish and pointing lower supporting this view. Conversely, on any corrective recovery, its eroded support at 94.63 should reverse roles and provide resistance. Further out, a decisive violation of the 104.41 level, its May 11'2011 high must occur to end its present weakness and then open the door for more strength towards the 106.50 level and its psycho level at 110.00. All in all, Crude Oil has broken to the downside suggesting further declines in the new week.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.