The October 14 crude oil contract on Thursday broke out to the upside from a near two week sideways trading range. This could be the beginning of a trend change back higher.
The October contract closed Thursday’s session just above weekly chart resistance settling at 94.55, up .67.
Former resistance broken yesterday between 94.35-94.45 now becomes key support as a close back under this level today could indicate the breakout has failed.
Longer term support levels are the 10 day moving average at 93.80 followed by the 93.05 weekly low.
If today’s breakout holds, the current overnight high of 95.15 is the first area of resistance followed by the 200 day moving average at 96.40. A close back above the 200 day average would turn the longer term trend back higher.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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