The October 14 crude oil contract traded down to a new 7-month low of 92.50 in last Thursday’s session but moved back higher into Friday’s close settling the week at 93.65.
The total loss for the week was 1.67 or 1.7%.
The market has been showing signs of stabilizing after recent selling which has dropped the October contract 13.05 or 12% from the late-June high. But the primary trend at this point remains down.
The 10 day moving average has been key resistance over the past 4 weeks and is at the 94.40 today. A daily close above this average could be an early indication the market has posted a near and possibly long term low.
A drop under last week’s 92.50 low would keep the trend bearish with following support at the current 2014 spot contract low of 91.24 followed by the October contract 2014 low of 88.69.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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