Crude oil prices lost ground again in last week’s trade as the market has now closed down 14 out of the past 17 weeks.
The spot November 14 contract which expires on tomorrow’s close last week fell below the 80.00 level for the first time since June 2012. The market rebounded back higher on Thursday, traded flat on Friday closing the week at 82.75, down 3.07 for the five days of trade.
The 10 day moving average which held as resistance near the daily highs on Thursday and Friday is at the 84.55 level today. A breakout above this average could be an early signal the market is bottoming.
The primary trend at this point remains down with 82.45-82.50 being the first area of support today followed by last week’s 79.78 low. A drop under last week’s low would turn weekly chart support at 77.28 from June 2012 into the next downside support.
Funds continue to liquidate speculative long positions in the crude oil market but still remain fairly long given recent weakness in the market. Friday’s Commitment of Trader’s report showed funds long 278,780 futures contracts, down 14,903 from the previous week.
Technical Indicators: Moving Average Alignment – Bearish
Long Term Trend Following Index – Bearish
Short Term Trend Following Index - Bearish
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