Wednesday’s breakout by the September 14 crude oil contract
below 200 day moving average support failed to hold as the market reversed back
higher in yesterday’s trade.
After falling to a new 3-month low of 96.55 in early trade
on Thursday, buyers came back in rallying the September contract to a 97.34
close, up .42 for the day.
Daily settle back over the 200 day moving average is a
bullish signal but the September contract will now need to breakout above the
10 day moving average at 98.65 to turn the trend back higher.
The 200 day moving average at 97.10 is the first area of
support today followed by yesterday’s 96.55 low. A drop back under
yesterday’s low will likely indicate the downtrend has resumed with the next longer
term support then becoming the 91.00-92.00 area.
Technical Indicators: Moving Average Alignment –
Neutral-Bearish
Long Term Trend Following Index – BearishShort Term Trend Following Index - Bearish
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