Monday’s upside breakout by the November 14 crude oil contract above resistance at the upper-93.00 level failed in yesterday’s trade. The first sign the rally was failing was the inability for the contract to break above the 95.07 late-August high as resistance topping out at a 94.90 early morning high.
The next bearish signal was when the November fell back under upper-93.00 support broken as resistance on Monday. As support failed, selling intensified into the close with the contract losing 3.41 (3.6%) to settle at 91.16.
The one positive note for the bulls is that yesterday’s sell off held above trend line support drawn off the 89.56 September low bottoming out at a 90.86 low. This trend line at 91.00 today held as support also in the overnight session. A drop under this trend line is needed to keep the near term trend down.
Moving average alignment is again bearish with the 10 day average at 92.25 being the first resistance today followed by the 40 day average at 93.30. Longer term resistance are weekly highs between 94.90-95.07 with a breakout above this area needed to turn the market trend back higher.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
No comments:
Post a Comment