Crude oil is moving in a descending triangle on 240 min charts and yesterday good selling seen around $85.90 on its trend line resistance of descending triangle and price fall sharply till 83.61 from a high of 85.70 on Nymex . Crude was trading at 83.66 when this report prepared and its MACD is also supporting this view and crude can slide up to $80.50-80.50 again during next 1-2 trading session and good resistance seen near 85.70 for this view and 83.20 is looking minor support . 85.70 is a level that can act as good stop loss for sellers. Today EIA will release weekly inventory for crude oil and expected inventories are -0.8M for this week and previous were 1.5M expected inventories are also neutral for crude oil if it moves as per our technical view then we can see a good slide in crude in next 1-2 trading session. Over all Crude oil is looking bullish on long term charts and personally I am expecting a $90-103 in medium term. This is only very short term view...
Rule number 1.Don't lose your money , Rule number 2.Don't ever-ever forget rule number 1.