Despite crude oil’s recent and sharp rally, this market remains in a position pointing lower, not higher.
The big picture in crude oil will remain bearish while below the zone of resistance established at 36.40 – 37.75. The recent bounce tested and pulled back from nearby resistance at 31.29 and this initial resistance level remains intact.
Additional resistance is at 33.64 on any renewed strength and only a move above each of these nearby resistance levels would begin to shift the bias away from bearish and open the door for a move to test the key resistance zone at 36.40 – 37.75.
