CRUDE OIL: With the commodity declining the past week to close lower, the risk is for Crude Oil to extend that weakness. Although presently seen hesitating, it still faces downside risks. Unless it returns above the 90.30 level, its Dec 03’2012 high, it could face further downside towards the 84.04 level, its Nov 07’2012 low. Below here will call for a move lower towards the 83.00 level and then the 81.00 level, its psycho levels. On the other hand, it will have to break and hold above 90.30 level to reverse its present bear threats and create scope for more upside towards the 91.25 level, its Oct 22’2012 high. Further out, resistance resides at the 92.00 level. All in all, Crude Oil faces further downside risks below the 90.30 level.
