Technical outlook:
A daily chart view has been presented here for crude to provide a medium-term outlook. As seen here, crude oil has been dropping since forming highs at 77.00 levels earlier and has been forming lower lows and lower highs, breaking interim supports on its way below. The recent support being taken out was at 67.00 levels, when prices settled lower towards 65.50 levels before pulling back higher. Please also note that crude has achieved its fibonacci 161.8 extension already as projected here. Ideally, one should expect a sideways action or a triangle consolidation towards 69.00/70.00 levels before it finds resistance again. The next support in line for bears to target is 64.50, before the commodity produces a meaningful correction.
Trading plan:
Flat for now, look to sell at 69.00/70.00 levels,stop 71.50, target 64.50
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com