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CRUDE OIL: Remains Vulnerable To The Downside

The commodity remains under bear pressure following a failed attempt on the upside on Wednesday. Crude Oil remains vulnerable after its wednesday and eyes further losses possibly towards the 94.63 level, its May 06'2011 low. This mentioned weakness is coming on the back of a failure at the 104.41 level. Further supports are located at the 91.27 level, its Feb 21'2011 low and then its long term rising trendline dating back to 2009 at 87.27. We expect the commodity to find a breather here and then turn higher in the direction of its long term uptrend, which is now on hold. Alternatively, the commodity will have to turn back above its 2011 high at 114.82 level to reverse its corrective bearish tone. This will resume its long term uptrend and target further upside strength towards the 117.90 level. Further out, the 120.39 level, its Aug 2008 high comes in as the next upside target. All in all, Crude Oil looks to weaken further having lost upside momentum and tumbled lower.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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