CRUDE OIL: Pressure continues to build on the upside with the possibility of returning to its Nov 14’2011 high at 103.38 shaping up. This if seen will resume its medium term uptrend and set the stage for a run at the 104.60 level, its May 11’2011 high. Further out, resistance resides at its psycho level at 108.00. Alternatively, the risk to this analysis will be for the commodity to decline towards the 94.99 level where a violation will call for a push lower towards the 94.13 level, its Aug 03’2011 low and then the 90.69 level, its Sept 07’2011 high. We may see a respite here turning Crude Oil back up but if this fails to occur, further weakness should target the 84.22 level. All in all, Crude Oil faces the risk of recapturing the 103.38 level as it continues to maintain its medium term uptrend.
