By Mohammed Isah of fxtechstrategy.com
As crude oil weakened for a second day in a row Tuesday following its loss of upside momentum at $80.75, we are looking for its Feb. 3 high at $78.01 or its long-term rising trend line support currently at $76.43 to provide support and turn the commodity higher again in line with its nearer-term uptrend triggered off the $69.69 level.
for a chart of crude oil.
Except the mentioned levels are decisively broken, a return back above the $80.75 level is likely with scope for a further up move towards its year-to-date high at $83.93. Beyond that level would trigger the resumption of its medium-term uptrend toward its Oct. 12, 2009 high at $84.79 followed by its .50 Fibonacci retracement ($145.79-$35.53 decline) at $91.18.
Alternatively, if the $78.01/$76.43 levels give way, it will warn us of a recapture of its 2010 low at $69.69 with a break through there resuming its short-term weakness initiated from the $83.93 level and targeting its Dec. 14, 2009 low at $68.69.
On the whole, although under pressure, as long as crude oil holds above the $78.01/$76.43 levels, its recovery started off the $69.69 level should recapture the $80.75 level and beyond.
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.