Crude Oil Weekly Technical Outlook

Crude oil's rally extended last week and reached 41.20 but lost momentum. We're expecting strong resistance from 40.00/41.42 resistance zone (61.8% retracement of 50.92 to 26.05 at 41.42, 38.2% retracement of 62.58 to 26.05 at 40.00) to limit upside. Break of 35.96 will suggest that rebound from 26.05 is completed and will turn bias back to the downside for retesting this low. However, sustained break of 40.00/41.42 will pave to way to 61.8% retracement of 62.58 to 26.05 at 48.63 and above.