NYMEX Crude oil futures, April 10 (CLAJ0):
The weekly continuation chart still features higher highs and higher lows, although the uptrend has been decelerating for months now, and the forward curve is higher on the week, with a narrowing of the contango.
On the scale of the daily chart, the underlying trend is up, but today’s hesitant price action points to the risk of a short-term corrective decline. As long as CLAJ0 remains above 77.50 though, the overall picture will remain very strong and the contract will be well positioned to continue higher towards 82.50 then 83.20, then 84.00-84.09.
At that point, a trade above 84.00 would be a higher recent high on the weekly chart, thereby continuing the series of higher highs, higher lows since January 2009.
Invalidation: a return below 77.50 would signal a test of 76.71. Then, a trade below that level would open the door to a decline towards 76.35-76.13.
Provided by NewEdge USA, LLC
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