With U.S Crude Oil forming a bearish divergence at 63.27 levels, followed by a rejection from the key resistance 62.10, Crude Oil’s upward trend has lost its steam, threatening weakness in the upcoming days..
On the downside, Immediate support comes at the 60.92 levels ahead of the 58.91 levels (main), where a cut will call for a fall towards the 55.25 levels, a halt might be seen, but further down will see more weakness towards the 53.00 levels. If 53.00 fails on a daily closing basis, volatility within 50.00/53.00 range is likely before the next possible rise…
On the upside, a failure to holds losses below the 60.92/58.91 levels could mean a return to the 62.10 levels, sustained breakout above the 62.10 levels will extend gains towards the 63.27 where a breach is very likely, If seen, a run towards the 65.85 levels will be in sight, further upside will aim the 70.00 levels.
In all, as long as 60.92/58.91 support holds on a daily closing basis, outlook in U.S Crude Oil remains-cautiously- on the upside towards the 62.10/63.27 levels ahead of the 65.85 levels, below 58.91 will confirm topping at the 63.27 levels and suggest large reversal towards the 55.25/53.00 levels.
Crude Oil vulnerable to the downside, support at 58.91 levels!