CRUDE OIL: The commodity continues to sell off declining further today on the back of the past week losses. This development has exposed its immediate support located at the 93.00 level where a violation will turn focus to the 92.10 level, its Dec 27’2013 low.
Further down, support comes in at the 91.00 level where a break will target the 90.00 level, its big psycho level. The bulls may come in here and push 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 aimed at. Its daily and weekly RSI are bearish and pointing lower supporting its bearish tone.
Conversely, resistance resides at the 94.00 level with a breach of here exposing the 95.00 level and subsequently the 96.00 level. All in all, Crude Oil remains biased to the downside in the medium term.
Guest post by FX Tech Strategy
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