Crude oil: Facing resistance
Crude oil had crossed the long-term falling trendline. However, it couldn’t sustain at the higher level and tumbled sharply from there. On the way down crude broke the long-term rising trendline. The wave structure shows that it has formed a five-wave decline and retraced the fall. It fell just short of the equality target for the pullback, ie $94.5. The key resistances are the 50% retracement mark, the 20-WMA and the 40-WEMA, ie $94. Unless these are crossed crude oil could resume the overall downtrend. On the downside the equality target would be $72.3.
