The November 14 crude oil contract remains in a very bearish downtrend falling to a new 2014 contract low at 86.83 in Wednesday’s trade.
Yesterday’s sell off also dropped the November contract to the lowest spot price level since April 2013 when the market bottomed out at a 85.61 low.
If 85.61 weekly low support is reached and broken, the 84.41 low set by the November 14 contract in April 2013 will become the next downside support.
The market is near term oversold as evidenced by yesterday’s daily settle nearly 4.00 below the 10 day moving average so short-covering could come into the market over the next few days.
But at this point, the bears remain firmly in control.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bearish
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