The two day rally by the October 14 crude oil contract came to an end on Wednesday as market remained weak for much of the day. The October contract did manage to rally back off the 93.74 intraday low to settle the day at 94.42, down .46.
The inside range bar posted yesterday is a potentially bearish technical signal but the market is currently higher on the day.
There is strong technical resistance today beginning at the 95.19 weekly high extending up to the 40 day moving average at 95.30. A breakout above this resistance would turn the 200 day average at 96.50 into the next upside resistance. It would also likely signal a market low has been set.
If lower-95.00 resistance holds, the current overnight low of 93.62 is the first area of support followed by the 10 day moving average at 93.25. A drop back under the 10 day average would turn the near term trend back lower with following support at the 90.43-90.63 lows set over the past week.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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