Crude Oil Market Testing Key Technical Support At 97.00

The September crude oil contract traded back toward the lower end of the recent trading range but for a third consecutive day was unable to break under 200 day moving average support.

 The September contract did push down to a new 3-month low of 97.00 on Tuesday finishing the session at 97.38, down .88.

The trend remains down with a drop below 200 day moving average and weekly low support at 97.00-97.10 needed to extend the downtrend. 

 The 97.00 level is an important support level also on the daily continuation chart.  If 97.00 support fails, the market could eventually trade back toward early 2014 lows at the 91.00-92.00 level.

 The past two days’ highs at 98.67 are the first level of resistance followed by the 10 day moving average at the 99.65 level today.

Technical Indicators:  Moving Average Alignment – Neutral-Bearish

                                       Long Term Index – Bearish
                                   Short Term Index - Bearish