CRUDE OIL: While Crude Oil’s medium term outlook still points to the upside, it now faces corrective weakness triggered from the 110.48 level. This continued downside vulnerability leaves the risk of retargeting the 103.38/104.10 levels on the cards. However, as long as that zone continues to hold as support, we look for a return above 109.95 level. This if seen will push Crude Oil further higher towards the 110 level where a break will call for further run to the upside towards the 114.07 level. Alternatively, in case Crude Oil breaks the 103.38/104.10 levels, further declines could be seen towards the 104.60 level, its May 11’2011 high and even lower towards the 100.00 level. All in all, Crude Oil remains biased to the upside in the medium term but faces corrective weakness.
