The November 14 crude oil contract broke out above 40 day moving average and trend line resistance at the upper-93.00 level on Monday. If the breakout holds over the next few days, the market trend may have turned back higher.
In yesterday’s trade, the November contract closed above the 40 day moving average for the first time since July 8th settling the day at 94.57, up 1.03.
The trend for the market will turn up if the November contract can hold above former trend line resistance as well as the 40 day moving average as support currently between 93.50-93.60.
The next upside resistance is the 95.07 late-August high followed by the 200 day moving average at 95.70.
The bulls appear back in control following yesterday’s breakout. The next few sessions should be a good indication as to whether or not the breakout is for real.
Technical Indicators: Moving Average Alignment – Neutral
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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