CRUDE OIL: While our immediate bias on Crude Oil is to the upside on corrective recovery, its short term weakness triggered from the 114.82 level in May’2011 remains dominant. This suggests that on ending its recovery, we could see the commodity turning back down towards the 89.60 level, its Jun 27’2011 low. A cut through that level will call for a move further lower towards the 83.84 level, its Feb 15’2011 low and subsequently the 80.28 level, its Nov 23’2010 low. On the upside, risk remains towards the 99.94 level, its Jun 16’2011 high. A clearance of that level will set the stage for a move higher towards the 104.41 level, its May 11’2011 high. All in all, Crude Oil may have halted its recent declines and triggered a recovery higher but still retains its short term downside tone.
