Crude Oil Morning Technical Report 1/10/2014

Crude dropped sharply yesterday after Consumer confidence data declined contrary to the expectations.

Technically, we notice that Fibonacci level 50% formed a strong resistance in front of the positive attempts at 94.70, whereas the price failed to break above and rebounded sharply to the downside and is trading again within descending channel, as its significant to break 91.75 and stabilize below it while providing signals of reactivating the Doouble Top Pattern showing on graph.

We prefer to remain on the sidelines now to monitor the price at the support 90.60 and resistance 93.15, whereas a break below this support confirms that the negative affect of the mentioned bearish pattern is still ongoing, and the price is moving towards 85.45, while breaching the resistance is a positive catalyst that could bring the price back to the upside.