The November 14 crude oil contract traded down to a 88.76 low in early trade on Monday. But the contract was able to reverse back higher by mid-morning and remained well bid into the close settling at 90.34, up .60.
Last Thursday’s 88.18 low has held as support for the following two sessions but the market remains technically weak. The 87.00-89.00 level has been a strong support area for this contract dating back to May 2013. If this support area is broken, the 84.41 low from April 2013 will become the next downside support.
The 10 and 40 day moving averages currently at 91.80 and 92.80, respectively, will remain the first two areas of resistance. Longer term resistances levels are the 94.90-95.07 weekly highs posted over the past month. A rally above these highs would likely indicate the longer term trend has turned back higher.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bearish
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