The September 14 crude oil contract has coiling in a
sideways trading range for the past 7 sessions alternating between 200 day
moving average support and 10 day moving average resistance.
The 10 day moving average held as resistance for a third day
on Tuesday on early strength as the September trended lower into the
close losing .71 to settle at 97.37.
The breakout from the sideways range in whichever direction
will likely be volatile.
A breakout above the 10 day moving average at 97.65 today
and two week high resistance between 98.58-98.67 is needed turn the near term
trend back up with 100.95-101.00 becoming the next upside resistance.
While a breakout first below 200 day moving average support
at 97.15 followed by last week’s 96.55 low would turn the longer term trend
back down with 91.00-92.00 weekly chart support then becoming the next downside
objective.
The breakout may come following today’s weekly stocks
report.
Technical Indicators: Moving Average Alignment –
Neutral-Bearish
Long Term Trend Following Index – BearishShort Term Trend Following Index - Bearish
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