Crude Oil Tedhnical Update - Market Falls To New 7-Month Price Low

The new front month October 14 crude oil contract remains in a very bearish downtrend setting a new 7-month low in the overnight session.

The October contract did gain .59 on Wednesday settling at 93.45 but has since given back all the gains plus some in the overnight session.

The current overnight low of 92.50 is the first area of support today followed by the 2014 spot contract low of 91.24 set in January.  Longer term support is the current 2014 contract low for the October 14 contract at 88.69.

The 10 day moving average which has been solid resistance over the past 3 weeks is at the 95.00 today.  As long as the October contract trades below this average, the trend will remain down.

Hedge funds were still long 324,066 contracts in the WTI crude oil contract according to last week’s Commitment of Trader’s report.  As support levels are broken, fund liquidation increases adding pressure on an already weak market.

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