CRUDE OIL: The commodity continued to sell off pushing it below the 92.10 level, its Dec 27’2013 low and opening the door for more downside.
Further down, support comes in at the 91.00 level where a break will target 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 aimed at 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, resistance resides at the 92.93 level, its Jan 09 2014 with a breach of here exposing the 94.00 level and subsequently the 95.00 level.
All in all, Crude Oil remains biased to the downside in the medium term as it looks to weaken further.
Guest post by FX Tech Strategy
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