The November 14 crude oil contract moved higher toward key resistance in yesterday’s trade rallying up to a 93.54 morning high. But the market couldn’t maintain the upward momentum as it traded back lower into the close with the November contract settling at 92.53, down .27.
Early buying today has the November contract trading just under the 93.00 level. The 40 day moving average at 93.60 extending up to the upper triangle trend line near 93.90 will remain key resistance today. If this resistance holds, the fourth and final point of a triangle pattern will be complete.
Triangle has a 75% chance of being continuation rather than reversal patterns. In this case the continuation would be down toward the 84.00-85.00 level.
If the November contract instead breaks out to the upside above 93.90, the triangle will be negated and the longer term trend will turn back higher.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
No comments:
Post a Comment