The September 14 crude oil contract on Wednesday was finally able to break below 200 day moving average support at 97.00 after holding above this area for the previous 3 sessions.
The contract closed at a new 3-month low settling the day at
96.92, down .46.
The September contract traded down to a 96.55 overnight low
but has since rallied back higher over 200 day moving average support.
If the rally back over 97.00 support holds over the next few
sessions, it could signal Wednesday’s downside breakout has failed and the market
has bottomed.
Key resistance levels to clear in order to turn the near
term trend back high is first the 98.67 weekly high followed by the 10 day
moving average at 99.10.
If resistance holds, the trend will remain down with 96.55
extending down to the 96.43 May low being the first area of support followed by
weekly chart support at 95.20. If this
support is broken, the 91.00-92.00 level will become the next downside
objective.
Technical Indicators:
Moving Average Alignment – Neutral-Bearish
Long
Term Trend Following Index – BearishShort Term Trend Following Index - Bearish
No comments:
Post a Comment