Today’s expiring September 14 crude oil contract fell to the lowest price level on Tuesday since early-February bottoming out at a 94.26 intraday low. Losses for the day amounted to 1.93 (2%) with the September contract settling the session at 94.48.
The September contract was trading sharply higher in the overnight session nearly erasing all of yesterday’s losses but has since back off by 1.00 from the 96.25 overnight high.
A bear flag pennant was initiated yesterday with the breakout under 95.26 support which points toward 92.50-93.00 for completion. The overnight rally retested former support as resistance overnight which held keeping the pattern viable.
There should be good buying interest for crude oil at the lower-90.00 area which has been the spot price low for 2014.
The 10 day moving average at 96.75 is the first area of resistance today above the current 96.25 overnight high followed by the 200 day moving average 97.25. A close above both averages which held as resistance earlier in the week would likely signal a near term low has been set in the market.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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