After falling to a new 7-month low at 92.50 in early trade on Thursday, the October 14 crude oil contract reversed back to close higher on the day.
Daily settle for the October contract on Thursday came in at 93.96, up .51 on the day. A potentially bullish outside range reversal as well as a hammer Japanese candlestick was posted yesterday but there has so far been no follow through buying in early trade today.
The trend at this point remains down with yesterday’s 92.50 low being primary support followed by the 2014 spot contract low of 91.24 set last January. Longer term support is the 2014 October contract low at 88.67.
Yesterday’s 94.45 high followed closely by the 10 day moving average at 94.75 today will remain primary resistance in upcoming trade. There has not been a single daily close above the 10 day average since July 24th.
If the October contract does close over this resistance, it could an early signal a market low has formed.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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