The crude oil market traded flat in last week’s trade holding above 80.00 support over the 5 days of trade. The new front month December 14 contract lost 1.05 over the course of the week settling Friday at 81.01.
The 10 day moving average held as daily high resistance 4 out of 5 days last week. This average at 81.40 held again near today’s 81.29 high which keeps the primary market trend bearish.
80.00 support has been broken overnight which turns the 79.10 low set two weeks ago into the next downside support. Following support is the 77.28 low posted in June 2012. If 77.28 support is broken, the 74.95 and 75.71 weekly lows from late-2011/early-2012 will become the next downside support levels.
Sellers remain in control as the crude oil market approaches multi-year price lows. Funds continue to hold a surprisingly large speculative long position of 280,101 contracts according to the COT report released on Friday. A drop under recent lows could trigger further stop-loss selling by the funds.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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