By Mohammed Isah of fxtechstrategy.com
NEW YORK (
) -- The risk of a follow through higher is now building up for crude as we enter a new week, as a reversal of its earlier losses for the week occurred on Friday.
Crude Oil closed flat the past week and an eventual return above the 93.00 level will restart its long term uptrend towards the 95.00 level and its big psychological level at 100.00. We may likely see a turn lower from that level on an initial test because of its psychological importance.
Further out, its .618 Fib Ret (147.90 -33.19 decline) at 102.89 will come in as the next upside objective in case the 100 level gives in. Alternatively, it will have to break and hold below the 88.87 level to reverse its Friday gains and bring further weakness towards the 86.00 level. A respite could be seen there.
Further down, support lies at the 82.76 level, its Nov 26'10 low. All in all, Crude Oil could be developing risk for a return above the 93.00 level.
Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.