The November 14 crude oil contract traded lower for most of Wednesday’s session but closed higher on the day as late day buying came into the market.
The November contract was also finally able to breakout above 10 day moving average resistance which had held the previous two days settling at 92.80, up 1.24.
Buying has continued overnight moving the November contract up toward a key area of resistance.
This resistance is the 40 day moving average at 93.70 followed closely behind by a trend line near the 94.00 level.
If the rally stalls below 94.00, the fourth and final point of the triangle which has been forming on the chart since early September will be complete. The triangle is labeled on the chart with points 1-4. If this triangle does form, it would likely be a continuation pattern pointing toward lower prices.
On the bullish side, there is an equally strong chance for the November contract to break out above 94.00 resistance. If this occurs, the triangle will be negated and the longer trend for the market will turn back higher.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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