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Thursday, August 14, 2014

Crude Oil Technical Update - Holding In A 9 Day Sideways Range



The September 14 crude oil contract traded down to a 96.75 low following release of the weekly stocks report on Wednesday but recovered all the losses plus some by the close gaining .22 to settle at 97.59.

The market now enters into a 9th day of sideways trade alternating between support at 96.55-96.75 and resistance at weekly highs of 98.58 and 98.67.  A breakout from this range is needed to determine the next leg for the market.

An upside breakout above 98.67 resistance would turn 100.50 into the next upside resistance followed by the 40 day moving average at 101.50. 

If the breakout instead comes to the downside below 96.55 support, the 94.50 level would be next downside support followed by weekly chart support between 91.00-92.00.

Technical Indicators:  Moving Average Alignment – Neutral-Bearish
                                         Long Term Trend Following Index – Bearish
                                         Short Term Trend Following Index - Bearish

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