The crude oil market was heavily sold in Tuesday’s trade suffering one of the biggest daily losses in two years. The spot November 14 contract fell 3.90 or 4.5% in yesterday’s trade settling at a new 2014 low of 81.84.
80.00 support has been tested overnight holding at a 80.01 low. If this support is broken, the 77.28 weekly low from June 2012 will become the next downside support area.
The crude oil market is currently in a price collapse very reminiscent of 2008 when nearly every asset class crashed together. The mid-70.00 area will be a very important support area if reached for the crude oil market.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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