Crude oil prices rallied sharply higher on Tuesday extending the small gains made on Monday.
On Monday, the spot October 14 contract spiked down to a 90.63 intraday low holding .20 above the previous low set two days earlier. The inability to push down to a new low brought in both short-coverage and renewed buying interest in following trade.
The October contract gained 1.96 in Tuesday’s trade closing at 94.88.
The 10 day moving average was broken as resistance on Tuesday which turns the near term trend back higher. The next upside resistance above yesterday’s 95.19 high is the 40 day moving average currently at 95.50. A rally above this resistance would be further indication that a market low has been set.
The 10 day moving average at 93.25 today will remain primary support in upcoming trade. A close back under this average will turn the trend back down with following support at the 90.43-90.63 lows set over the past week.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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