The spot October 15 crude oil contract late last week
rallied higher from a new 6-year low of 37.75 set on Wednesday.
The rally lifted the market back toward 16-year trend line
support broken two weeks ago. This former support now becomes resistance
at the lower-45.00 level topping out on Friday at a 45.90 high.
If the crude oil market fails to rally back above former trend line support, the trend will remain down with last week’s 37.75 low being the first area of support. Longer term support is the 32.40 low set in December 2008.
If the October contract can rally back over former trend
line support and remain above the 45.00 level, it may indicate a long term low
has been set in the crude oil market.
No comments:
Post a Comment