Similar to most of the other energy markets, crude oil on Tuesday was heavy sold with the October 14 contract trading sharply lower.
The October contract fell by 3.08 or 3.2% in yesterday’s session closing the day at 92.88.
The one positive note for the bulls in Tuesday’s session was the inability for the October contract to push under the 92.50 low set two weeks ago. Yesterday’s intraday low bottomed out a 92.68 holding above the August low as support. These two support levels need to be broken to keep the primary market trend down.
The 10 day moving average at 94.00 has been broken as resistance in the early trade today which turns 94.35-94.40 into the next upside resistance. Longer term resistance is the 96.00 high set last week.
Bottom line, the October contract has fallen back toward the lower end of the past 3 week trading range. If 92.50-92.68 support is broken, 88.00-89.00 will become the next support area for a possible low. If support holds, it could be the final low for the market.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
No comments:
Post a Comment