CRUDE OIL: Holds On To Long Term Tone.
CRUDE OIL: Price hesitation may be seen but the commodity remains biased to the upside in the long term. With Crude Oil holding on to most of its recovery gains from the 96.21 level, we look for it to strengthen further towards its 2011 high at 106.94. On a clearance of that level, the commodity will resume its long term uptrend and then target the 108.00 level. Further out, overhead resistance comes in at the 110.42 level, its Sept 21’2008 high. On the other hand, a turn back below the 102.10 level, and the 96.21 level will have to occur to reverse our upside view. This will clear the way for a run at its Feb 22’2011 low at 93.50. Crude Oil may find a respite there and turn back up again but if that level snaps, the 91.27 level will be targeted. All in all, with a continued hold on to its run from the 96.21 level seen, the commodity looks to recapture the 106.94 level and beyond.