Crude oil prices tipped back lower to begin the week on Tuesday with the new spot March 15 contract closing down 2.66 (5.4%) to settle at 46.47.
The primary trend remains down with 16-year weekly chart trend line support at the mid-40.00 level being the key technical level to watch. This support reached early last week has held on the first test and should continue to be tested in upcoming trade.
If mid-40.00 support holds over the next few weeks of trade, a long term low could be set in the market. If support is broken, 40.00 will become the next downside price objective followed by the December 2008 low at 32.40.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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