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Friday, October 3, 2014

Crude Oil Technical Update - Potentially Bullish Hammer Candlestick Posted On Thursday



After spiking down to an 88.18 early morning low on Thursday, the November 14 crude oil contract rallied back higher into the close ending the day 91.01, up .28.

Today’s early strength topped out at a 91.79 high holding just below 10 day moving average resistance at 91.95.  Longer term resistance areas are the 40 day moving  average at  93.00 followed by the 94.90-95.07 weekly highs.  A rally back over  the weekly highs near 95.00 is needed to turn the longer term trend back up.

89.50-89.75 is the first area of support followed by Thursday’s 88.18 low.   Thursday’s bullish reversal  is the type of price action seen near market  lows.  If the market can stabilize over the next few days, a low could be in for 2014.

Technical Indicators:  Moving Average Alignment – Bearish
                                         Long Term Trend Following Index – Bullish
                                         Short Term Trend Following Index - Bearish

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