CRUDE OIL: With the commodity weak and vulnerable to the downside, further decline is likely. The minimum support comes in at the 91.21 level where a break will push it further lower towards the 90.00 level, its big psycho level. Bulls may come in here and turn the commodity back up.
However, if that fails to occur expect Crude Oil to weaken further. In such a case, the 89.00 level will be targeted where a breach will pave the way for a run at the 88.00 level. Its daily RSI is bearish and pointing lower suggesting further bearishness.
Conversely, the commodity will have to break and hold above the 93.33 level, its Jan 10 2014 to annul its weakness. This if seen will aim at the 94.00 level and subsequently the 95.00 level.
All in all, Crude Oil remains biased to the downside in the medium term with further decline envisaged.
Guest post by FX Tech Strategy
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