Crude Oil Weekly Technical Outlook

Crude oil's decline last week is taken as as early sign that rebound from 26.05 is completed at 41.90. That's in line with our expectation of 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). Break of 35.96 will confirm this view and turn bias back to the downside for 55 days EMA (now at 33.73) first. Sustained trading below there will bring retest of 26.05 low. Nonetheless, 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.