As per daily log scale crude is trading in down trend and taking resistance on down sloping trend line. Crude made high of 114.80 in may 2011 this year, and then a nice correction seen in crude form the high of 114.80. Now crude is facing very stiff resistance on its down sloping trend line. After a bottom of 89.61 crude retested this falling trend line and nice resistance seen near 101 and a nice selling seen near trend line resistance and a sharp fall seen till 75.70 after that level. Now crude has again retested this down sloping trend line and made 90.49 high during last week but after looking at charts it seems that professional traders are selling crude oil near resistance of this down sloping trend line that’s why nice selling seen despite of supportive inventory data during last week and crude made low 86.98 after a high of 90.49. Bearish crossover seen on its stochastic indicator that is also supporting our bearish view and valid trend line confirmation and a rising wedge during the down trend is also suggesting that another sharp down side move can take place after bearish breakout of this rising wedge. 91 is looking very stiff resistance for this down move and a break above this resistance will completely neglect our bearish view otherwise we are expecting 84 as an immediate support and below 84-83 zones a sharp fall till 75-70 can’t be ruled out.
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