CRUDE OIL(futures): Outlook for Crude Oil continues to improve and point higher as recovery momentum initiated from the 69.69 level, its 2010 low continues to target higher prices. The commodity came off its intra day low at 76.71 to rally through the 78.01 level, its Feb 03’10 high and test as high as 79.42 in Thursday trading session. It now requires a decisive break and hold above the 79.43 level where its Jan 19’10 high and the 80.72 level, its Jan 14’10 high to create further upside scope towards its YTD high at 83.93. We cannot rule out corrective pullbacks as the journey to recapture its key resistance at the 83.93 level is now shaping up. If corrective dips are triggered, its Feb 03’10 high at 76.09 will be targeted at first where a clean penetration and negation will set the stage for further weakness towards its Feb 11’10 high at 76.09 and its rising long term trendline support currently at 75.82. We expect these levels to hold and turn Crude Oil back up again in line with its nearer term uptrend. On the whole, Crude Oil has improved its technical outlook following its recovery momentum from the 69.69 level and now looks to build more on that strength with eyes on the 83.93 level.
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