The October 14 crude oil contract briefly broke out above 94.00 resistance in Tuesday but dropped back under this level by the session’s close settling at 93.86, up .51.
The 10 day moving average at 93.85 today has been broken in the overnight session turning yesterday’s 94.35 high into the next upside resistance. There has not been a single daily close above the 10 day moving average since July 25th. A breakout above 94.35 could indicate a market low has been set.
93.40-93.50 is the first area of support today if today’s early strength fades with longer term support at last week’s 92.50 low. If the 92.50 low is broken as support, the 2014 spot contract low of 91.24 will become the next downside support.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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