The November 14 crude oil contract fell to a new 2-year low in last Friday’s trade and has now closed down 13 out of the past 16 weeks.
After setting a low of 83.59 on Friday, the November contract rallied back higher into the close settling at 85.82, up .05 for the day. For the week, the November contract lost 3.92 or 4.4%.
The market remains weak with Friday’s 83.59 low being the first area of support followed by 82.10.
Longer term support from the weekly chart is the 77.28 low from June 2012.
Friday’s 86.29 high is the first area of resistance today followed by the 10 day moving average at 88.55. As long as the November contract trades below the 10 day average, the trend will remain down.
The Commitment of Trader’s report released on Friday showed funds long 293,683 contracts, down 2,263 from the previous week. Funds remain historically long given recent weakness in the market.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bearish
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