Crude oil prices trended higher for a second day in Wednesday’s trade with the December 14 contract closing back above 10 day moving average resistance.
The December contract closed Wednesday’s session at 82.20, up .78 for the day.
Nearly all of yesterday’s gains have been erased in today’s early trade as the December contract has again fallen back under the 10 day moving average at 81.65. If weakness continues, the 79.10 and 79.44 weekly lows will become the next longer term support area.
Upside resistance for today begins at yesterday’s 82.88 high extending up to 83.15. Longer term resistance is 84.00-84.10 and the 40 day moving average at 87.40.
Failure to extend the past two days’ gains today is bearish. A small triangle appears to be forming over the past two weeks which would likely be a bearish continuation pattern toward a new price low.
Technical Indicators: Moving Average Alignment – Neutral-Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bullish
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