The new front month December 14 crude oil contract is pushing up against 10 day moving average resistance in today’s early trade. A breakout above this average at 82.85 today could be an early signal the market trend is turning back higher.
In Tuesday’s session, the December contract held for a third day in a narrow sideways range bouncing higher in late trade to settle the day at 82.49, up .58.
If 10 day moving average resistance is broken, the near term trend will turn back up with 84.75-85.00 becoming the next upside resistance.
If resistance holds, the 80.78 weekly low will be the first area of support followed by last week’s 79.10 low. Longer term support is the 77.28 weekly low from June 2012.
A key test of underlying market strength expected over the next few days of trade.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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