CRUDE OIL: Trendline Resistance Set To Cap Recovery.
CRUDE OIL: With a clear correction yet to be established, Crude Oil remains biased to the downside in the short term. This view remains valid as long as the commodity holds below its declining trendline resistance. Support lies at the 84.04 level where a breach could drive Crude Oil further lower towards the 83.50 level. We may see a halt in declines here if seen but if it breaks further downside will aim at the 82.08 level. On the upside, it will have to break and hold above the 91.25 level to trigger a meaningful correction. Further out, resistance resides at the 92.00 level andthe 93.63 level. All in all, Crude Oil continues to face downside risks despite recovery attempts.