Crude Oil to turn bearish after an excessive rally

Crude oil appears to turn bearish after a rally last weekend pushed US WTI Crude oil 4.9% higher on August 3. Analysts expect crude oil to face stiff resistanc at $93 levels and has retraced to $90 levels in Asian trading on Monday.
According to HY Markets, US WTI crude oil is set for a higher opening in the Monday night session but stochastic and the RSI are bearish signaling that additional strength is needed before these indicators turn bullish again.
Crude Oil gained 1.4% last week on positive US payrolls data and the fact that service industries expanded at a faster pace. Ernesto, located about 220 miles east of the Nicaragua and Honduras border, had winds of about 50 mph, down from 60 mph on Aug. 4, according to the U.S. National Hurricane Center.
According to HY Markets support levels for WTI Crude are seen at $88.56, $85.71, $84.15 levels, while resistance is seen at $92.97, $94.53, $97.38.
At India's Multi Commodity Exchange, crude oil futures rallied last week to Rs 5090 per barrel before closing at Rs 5073 per bbl.
On Monday morning, Crude Oil August opened lower at Rs 5062/bbl and fell to Rs 5051 before rebounding again. Markets seem to be volatile ahead of US Fed Reserve Chairman's Speech later in the evening, Sreekumar Raghavan, Chief Commoidty Strategist at Commodity Online said.
Source: Commodity Online